HI Haemitite,
you've hit several nails on the head again:
1. Don't value a Bulk Commodity company purely on tonnage.
Who would you rather own shares in-
Company with 1000Mt shipping 1Mt per year or
Company with 200Mt shipping 10Mt per year?
2. Its all about the grade.
The value per tonne calculations often forgets about penalties for high impurities. Eg. If Al is > 4% the iron ore value starts falling rapidly.
3. Caution though on takeover expectations
Yeah - but you have to ask yourself ... "Why is BHP building two rail lines as part of its RGP5 project to connect UMC tenements to its Newman hub?"
How about this for my current pie in the sky dream:
1. UMC trucks ore to Port Hedland (2mtpa)
AND
2. Strikes a deal with BHP to ship Jumbo + Yandi Headwaters ore.
AND
3. Strikes a deal with RIO to ship Railway ore.
AND
4. Gets a rail spur built into FMG.
How many Mtpa could that be :) :) :). I think I need a reality check.
Also, If anyone can get their hands on the Tex report, please email me. joelbaby @ hotmail.com
Joel
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