Labrador Iron Mines Holdings Ltd (LBRMF)

[Steve P]

All the estimates show that even if the iron ore price drops to $80 we are still very profitable

Using a current spot price of US$160/dmt, adjusted for an assumed price participation by the off-take partner,
would increase the after-tax NPV8% to $459 million and the after-tax IRR to 209%.
Using a current spot price of US$160/dmt, not adjusted for any assumed price participation by the off-take partner,
would increase the project after-tax NPV8% to $778 million and the after-tax IRR to 514%.

The undiscounted cash flow of the Houston Project, calculated using a benchmark iron ore price of US$90/dmt
(62% Fe CFR China basis) and a foreign exchange rate (US$/C$) of 1.33, is $234 million.