RE: RE: RE: deal coming or pullback.... The company's guidance is for free cash flow, not EBITDA, right? From the presentation:
Cash flow to NML anticipated to be $20 - $40 M / year based on FS results and product prices
EBITDA is not that useful a measure. Tata Steel Canada will take the EBITDA from operations and then pay taxes, pay interest, depreciate equipment, amortize whatever, and put money towards continuing capital improvements and new plants, etc. Only after all that will free cash flow be distributed. I don't expect free cash flow distributions for the first couple of years of the DSO project.
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Using current iron ore prices in an ad hoc manner is a mistake. Are current prices expected to last over the project's mine life? Of course not. Therefore the long-term iron ore price NML management has chosen should stand. Also, you can't use current iron ore prices but use the opex estimates from 2009. Labor and equipment costs have skyrocketed since then.