GREY:ARGEF - Post by User
Post by
juanito1on Jun 09, 2011 11:23am
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Post# 18693251
Proofread Savings
Proofread SavingsMy wife always says I need her to prrofread things...here goes again:::
There are some companies in North America who use 250,000 tons of TiO2 annually...the global market is well over 5 Million tons and growing. The estimates from the Doctors at the mini plant is that they would expect a 50% operatng profit...that was when TiO2 was $2200/ ton...in other words a per ton cost of $1100. Let say they are wrong by 20%...Operating cost was 60% or $1320/ton
Well now the selling price is around $2800/ ton and some have argued higher..but lets use that...This would mean a savings of $1480/ton
250,000 tons times $1480>>>>>is $370,000,000/ year operating savings....
Mine life at this rate assuming 7 million tons of TiO2 would be 28 years
28 years times $370mill is $10.4 Billion.....in savings over the life of the mine....
So your right Sopot...why should we even talk about a takeover......