thanks Realinvestor1 & neeco68
i did see neeco’s input, but couldn’t figure out that final all in cost.
the key here is that US$55.60 is about the bottom of the cycle. Chart below shows on only one brief time it dipped below that. That extra 20% saving from NextOre will be important:
https://tradingeconomics.com/commodity/iron-oretimingwise it should be ok, to get NextOre incorporated, with the time we have to production. Although it seems a little strange there was no mention of NextOre. Indeed no mention of that for a while?
even though I don’t subscribe to the “this time is different” scenario, I can accept in the global environment we’re in today, that the next bottom of the cycle may not get as low as previous ones, or stay down for any prolonged period. But we can’t bank on that. a statement on NextOre would be welcome.
others have mentioned HBI. I’d strongly support that. Any value add is worth considering. looking at an HBI option in a few years, would certainly help bullet proof the company long term.
so I think cost wise, we’re ok. From memory the funding timing is next year? Someone mentioned a large amount the SA government is providing to the IO industry. I’ve looked and can’t find anything about a multi billion $ amount being available. If there’s a link to that, please advise.
locking away the funding in the current higher price time would be great. That will remain the biggest risk until done. But it does look like they are in a good position to achieve that.
cheers,
ned.
