RE: RE: RE: cash costs
Dessertwolffz- Perhalps you would like to debate these costs with me.
I went back and checked the feasibility study from January and the only figure that I may have been off by is the royalty one. I think $30-40 would be more reasonable for sask and crown royalties.
The rest are right there in the feasibility study(which I hope you have read) for you to see.
Seeing as you think Wpx will get 100% financing, perhaps you would like to make a suggestion on how much
the annual interest costs will be on a per ton basis.
And please don't forget that a $35B company like POT CORP pays average rates in excess of 5%.
Also, a $4B company recently paid 7.5%.
Seeing as you think china blue will arrange financing for wpx, It might also be useful to note that China's prime lending rate is 6% and that if banks wish to make a profit, which they usually like to do, they would need to add a few percent to that 6% figure.
And before you say that Cnooc will lend $4 B to them, you should note that Cnooc has been borrowing large amounts of money recently and analysts are concerned about their balance sheet.
potash price $400
- $108(opex) including sustaining capex and well field blah blah.
-$60 (transport)
- $70 (royalties)
-$120 (interest costs
If they have $50 in free cash flow they will be doing well.