Hi All,
The question has been raised regarding pellets vs fines. The production of iron ore pellets is not my expertise, that said follow this link to learn more about the process:-
https://www.mogroup.com/mining/pyro-processing/iron-ore-pelletizing/#:~:text=Iron%20ore%20fines%20are%20agglomerated,the%20process%20to%20make%20steel.&text=Designed%20and%20supplied%20the%20largest%20straight%20grate%20systems%20in%20the%20world.
Why pellets instead of fines?? April's highest price for 65% iron ore fines has been $184.37, highest April price for 65% pellets $232.03.
The average premium paid for pellets over fines (65% IO) has been $54.80 (April 2022 data).
That's greater than our "All In cost"!
This is why GRR (Grange Resources) has been making record profits even with an "All In Cost" of $99.73 (2021 annual report data).
GRR's 2021 report states; total sales of 262 million tonnes, an average all in cost of $99.73 and an average sale price of $276.17 per tonne.
MGT recently suggested our all in cost will be $40.00....(67.5 to 68.5% iron ore).
I wonder what the extra cost would be to produce pellets???
Maybe we should register the trade mark "Super Pellets"...
Add to My Watchlist
What is My Watchlist?
