I'm listening to the conference call right now and it seems pretty simple.

As an integrated producer they assumed a margin of $209/T with current price (lets forget higher AU prices from FL shipping) so assumption was $445/T. (Now, the price is a little higher at $470/T)It is great they are trying to gain margin by making the most of their product with Wengfu techniques to get most value out of rock.

But overall it is easy....which way do you think the line on thig graph is headed? If prices double, our margin is leveraged so it more than doubles. It it falls, again we are legeraged so it will tank.

Place your bets...

http://www.mongabay.com/images/commodities/charts/chart-dap.html