Spend, spend, spend at Roy Hill

The AFR reports that sunk costs at Roy Hill are fast growing:

The latest downpayment on the project totalled $330.8 million, with the majority of that coming from Ms Rinehart’s international partners POSCO, China Steel Corporation and Marubeni.

…The latest instalments mean the partners have chimed in more than $US1 billion ($1.1 billion) for the project in the past four months, after making more than $600 million of investments in the September quarter, and just less than $300 million in mid-January.

I really want to know what the break even costs of this baby are. Estimates anyone?

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.