Largo Inc T.LGO

RE:RE:RE:RE:Iron-ore price down

[kha341]

kha341 wrote:

kha341 wrote: . If we could only sell our lower quality iron ore at merely US$100 / tonnes, then:

1) Our stockpile would = US$200,000,000

and

 2) A monthly sale of 50,000 tonnes would = US$5,000,000.

Btw, with a monthly sale of 50,000 tonnes we would only be able to clear our current stockpile in 40 months, never mind the annual production of 500,000 tonnes.  

 

If we decided to give our iron ore away at the dirt cheap price of US$50 per tonnes, then

1) Our 2,000,000 tonnes stockpile would still be worth US$100M, 

2) Our annual production of 500,000 tonnes would still = US$25M / year, and

3) A monthly sale of, let’s say, 50,000 tonnes would = US$2.5M / month

Mr Volant, wake up!

Almost all of those amounts could go straight to the bottom line of our books due to the fact that the Net Profit Margin would be huge, possibly at 90 - 95%.