GREY:ADEXF - Post by User
Post by
hundredvanities1on Aug 13, 2012 5:07am
330 Views
Post# 20209951
Conservative Feasibility Parameters?
Conservative Feasibility Parameters? The Roche Bay feasibility study is based on an iron ore price of $104 FOB Roche Bay. Despite the claims of many this is not a conservative projection of iron ore prices by Tetra Tech.
*
The current iron ore price hovers around $113.80 CFR Tianjin (China). A buyer who pays $104 per tonne for a shipment of iron ore delivered at Port of Roche Bay still has to spend $27 per tonne to ship that ore to China. So $104 FOB Roche Bay is equivalent to $131 CFR Tianjin. This feasibility study uses a long-term price that is practically $20 more than the current iron ore price.
*
That doesn't sound conservative.