Ann: Talga to Establish Separate Cobalt Company, page-10

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The magnetite is a slow burner, in the sense it needs benification in order to have any value. This process needs an expensive plant. LKAB who own similar mines nearby at Kiruna, Svappaavaara and Melmberg, who be the ideal candidate as they already own a plant to process their ore. In time their existing mines will be depleted and/or become more expensive that the two deposits that TLG own, together a sizeable resource. Even at US $ 1 a ton this is twice the current market value of TLG, the iron ore price is a significant multiple on a direct shipped ore basis, but attracts a premium once it has been processed as it has a higher grade and very specific amounts of impurity that can be quantified. The usual hiccup is the cost of the processing plant and the energy required to run it. LKAB enjoy an advantage on both counts. TLG just have to be patient: the plant is immovable as it the ore deposit, but TLG's deposit is right next door so to speak.