As follows is American MetalMarket reported news that has inspired me to
revisit the arithmetic my elementary school teachers covered way back when:

Ferro-titanium price rise as market tightens
Jan 25, 2012 / 10:24 AM

Ferro-titanium prices continued to rise on Wednesday January 25 as consumers sought
material amid tightening availability.

Material traded at $7.65-7.90 per kg on a delivered basis compared with $7.50-7.70 per
kg on January 20, when prices moved up 20 cents at the low end of the range and 25
cents on the high.

At least one UK supplier is sold out until mid-March, Metal Bulletin understands.

Prices are moving up so quickly that producers who offered out on January 20 are
having to sell at historical levels by the time their customers confirm, a market source
told Metal Bulletin.

“Material is tight; steel mills did their normal routine of cutting stocks at year-end.
There is a lot of consumer interest and traders want to buy because they see it going
up,” the source said.

Concluded business was reported to Metal Bulletin all the way across the trading range,
and fresh offers are being made at $7.90-8.00 per kg.

Janie Davies

As follows, according to Wikipedia, is the composition of Ferrotitanium:

CHEMICAL ANALYSIS (TYPICAL):
TiO2 - 79.3%
SiO2 - 2.2%
ZrO2 - 0.25%
FeO - 1.3%
Fe2O3 - 12.10%

EXPECTED VARIATIONS:
TiO2 75.0 - 82.0%
SiO2 1.0 - 2.5%
ZrO2 0.2 - 0.3%
FeO 1.2 - 1.5%
Fe2O3 9.0 - 15.0%

According to FNC, at Magpie, we likely have approximately one billion tonnes of ore,
which contains approximately 11% TiO2 and 43% Fe. It wouldn’t surprise me if the SiO2
and ZrO2 are present as well. Apparently, the typical Ferrotitanium raw material is similar
to our mountains of raw material.

I wonder, could we use 25% of the mountains we blow up (or the future buyers of FNC
blow up) to refine the desired product? I’m no metallurgist. But, at least, I can line up the
simple starting numbers.

1 billion tonnes = 1 trillion kilograms
25% of 1 trillion kilograms = 250 billion kilograms
250 billion kilograms = 200 billion kilograms after 50 billion kilograms are lost in the process
200 kilograms X $7.90 per kilogram = 1.58 trillion dollars

Of course those 1.58 trillion dollars are the market price for the delivered product. As the
ultimate rough estimate, after labor and expenses, say we were only to pocket 5%.

That’s 79 billion dollars.

Say, as the crime of the century, before we ever get to earn that 5% of that $1.58 trillion,
some underhanded cheaters accomplish the ultimate lowball takeover swindle, getting away
with paying us a measly 1% of the $1.58 trillion and keeping 4% or so for themselves. As
part of the theft, they also get to steal every single other thing we own, paying zero for the
entire remainder of the company.

We’re left with a paltry $15.8 billion, nothing else.

That’s $130.26 a fully diluted (as of 12/16/11) share. Compare that to the $651.30 or so
our shares would be if we were left alone to earn 5% of the $1.58 trillion.