Feasability Study The financial analysis for the pre-feabaility study was based on a long-term price of US$ 89.8 per tonne of acid pellet. Since I'm not sure what number they are using for the feasability study I'm assuming the same and hopefully not higher anyways. Iron just hit $ 88.40 and to me $ 70 seems like a reasonable long term number until a lot of the over supply and high cost producers get phased out ( Some are calling for $ 50 but I don't agree). The latest presentation shows roughly a 12 % IRR @ $90/tonne for Kemag, so at $80 or $70 the numbers don't work IMO but I could be wrong. My question would be what are everyones thoughts on a worst case scenario viability for the Taconites project and the dso project to remain cost effective and cash flow positive.
Projects like LIM are getting destroyed and it looks like most of the fringe names along the trough have fallen off of a cliff also.
p.s I'm glad the PQ only got a minority
Good Luck