GREY:ADEXF - Post by User
Comment by
rpdelucaon Aug 10, 2012 6:32pm
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Post# 20205992
RE: Kadillac, re: start up costs....
RE: Kadillac, re: start up costs.... What people don't realize here is one of the biggest factors as well that lead to a NPV of less than $1B is the price of iron ore that was used in the study. AXI chose to use $104...many PEAs that you've seen released in the while have used $115. If they would have used $115, it would have taken the NPV over $1B. It's all how the numbers are interpretted but with iron ore prices the way they are today ($115/tonne 62% concentrate), I'm sure managmeent would have been srutinized for using that number.
The other factor to consider in this is that 65% iron ore content was used. On average, every % increase in iron ore adds about $7.00 per tonne.
We now wait and see if the Chinese decide to move forward with the project.