I thought I would really have a look at the pfs, and what I came out with, isn't good reading.
the first thing is, the company has on purpose listed its all in costs under the 62% grade. Not the cost of producing 68% grade, which would be significantly higher. Looks like people have confused themselves into thinking, they are going to get more money because they are selling at 68%, therefore the project is more robust. They are clearly wrong. The company has clearly discounted the all in cost to 62% grade, to make the project comparable to dso ore, not other magnetite projects. This way it seems like the project is much better. You most probably would add 20 to 30 per tonne, if the costs where in 68% grade. Very very disappointing. And obvious people in the know, can see that from a mile away. The average retailer normally has no idea.
The second thing is the cost estimate only takes into account the cost of digging up the ore, processing it, transporting it to port, water, electricity, storage, mine overheads, etc. It doesn't not include corporate overheads, interest, or transport to customers (no mention of customers, people assume its chinese). These costs will have to be added to the all in cost. All costs are in us $, not aussie
Therefore the all in cost if correctly done in 68% grade would be alot higher than $54, more likely over $100 us. That would include company overheads (office, directors, listing costs, etc), interest, and transport to customers, etc. Making the project not that cheap at all
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