once there was a dream

FMG have been busy building a rail & port, while deperately looking for ore to put on the shiny new ore cars.

Fundamentals.

Read the Tollhurst broker coverage on fmg website - high risk, high cost. Best coverage I've seen on it for a while.

Cloud break is a high strip operation, mining predominantly 'Rocket' a product that needs to be beneficiated up to remove clay and silica. There is so little DSO lump it aint worth talking about. Bene plants are thirsty things and produce tailings. Producing 50Mtpa Rocket will need how much water ? Maybe 1 tonne per tonne of ore so 50 billion litres... 50 billion litres from production bores ! LOL !

The orebody is so skinny the only way to mine it is with road-profilers, scraping 4 inches of ore up on each pass. If you drill, blast and shovel you'd dilute alot more than 25% as fmg state. Teeth on the road profilers were lasting about 8 hours, now there's been a dramatic increase to 30 hours. They have to change out 76 picks on the drum of each of 14 machines every 36 hours. I make this 250 000 teeth per year. Good job the ore wagons come back empty - they'll need them for backloading teeth from Germany... Road profilers are not Cat 994's or XP4000's, they can't shift the dirt. There's no way fmg will get beyond 20Mtpa from cloud break, and it'll take a few years to get there. It'll end up a traditional truck and loader operation, with lots of high cost dozing, lots of dilution.

Sell Now ! Remember Murrin Murrin !!!! Bond holders got 24c/$... oh yeah baby !