Nobody has proven or itemized debt anywhere near 10 million.
microcaps1 March 20, 2011 1:01:54 AM
Post # of 35716
CWRN's project manager "Bullit69" said in post 31525 on 3-2-11 that the first shipment will pay off the debt.
I had estimated the ca 27 pieces of equipment that I knew of at $3 to 3.6 million if all bought new(I think the 3 or 4 mag separators for the 1-3mm ore are used).
Someone said 1st shipment would bring $7.1 million. For the 42007 ton KRITON that would be $169/ton. I had guessed contract price at $175,which would be $7.35 million.
Some have had a difficult time understanding that net profit is about 50% in this bullish industry,so there is plenty to go around,especially with debt paid off from first shipment. The big producers have cash coming out of their ears so they are spending ca 10 billion this year to buy back their stock.
If you look at historical iron prices you see why.
Until 2003,iron was only about $28/ton. This year it has ranged from ca $162-191 or more/ton. Its not likely to go below $150/ton,for,as Agmetalminer said 12-13-10,Chinese domestic cost of production at $150/ton for the Chinese poor grades of domestic ore(averaging only 30% iron and declining)sets a floor for ore prices.
As pesquero pointed out months ago gravel producers make a profit at $15/ton.
An email or other source from Bob some weeks ago said the share buyback would be on a ship by ship basis-i.e,indicating some proceeds from each ship would be allocated to buyback. Don't forget about the similar retirement of insider shares,as noted in several PR'S(see my past posts).
