HIO

14.3%

2.4¢ hawsons iron ltd

ABSOLUTELY COMPELLING ECONOMICS, page-709

First 709 Last

Share
Profile

Follow
Hottin

6,507 Posts.

350

13/09/22

14:42

Post #: 63672934
Share

Originally posted by That Fundamental Guy ↑

I do not wish to start any HIO v's MGT comparison arguments with this post. The intention is to highlight the demand for high grade magnetite and show that sometimes demand can pull a project into production.

MGT previously had a strategy of starting small (2-3Mtpa) to minimise capital development costs and then increase production in stages to 7Mtpa. Today, MGT have announced that they are refocusing their DFS and increasing the scale of the initial development to at least 5Mpta.

The reasons for this include "Industry feedback and, in addition, unsolicited recent approaches from a range of potential strategic partners and offtakers, suggesting larger development scale would be well supported." (see bottom of page 2 of announcement).

I have added the emphasis to unsolicited because I think this shows the level of interest and demand for products that HIO and MGT can produce.

I think it is worth noting the amount of capital that MGT might need to raise to commence with at least 5Mtpa capacity - which I assume it must now think it has good prospects of raising. The chart below is from slide 10 of the investor webinar also announced today. I understand that the amount of capital required to get to 7Mtpa on a staged basis was either A$1,985M or A$2,650M (A$665M for stage 1 plus A$1,985M for next stage).

What this indicates to me is that if MGT thinks it is worth changing from start up costs of $665M to A$2 Billion odd for a 5Mtpa+ capacity mine, then HIO should have good prospects of being able to raise enough capital for 20Mtpa as HIO's capital cost is unlikely to be four times MGT's estimated costs.

Expand

I agree TFG.
Capital intensity
HIO - @ 10mtpa, $1.4B approx. $140/t, I expect this will be lower approx $130/t @ 20mtpa
FMG, Iron Bridge approx. cost $3.5B for 22mtpa gives us approx. cost $159/t @ 22mtpa
MGT - approx. cost AUD$1,985B * .7 = /5mtpa = USD$277/t @ 5mtpa

HIO's project will be the lowest cost even if the cost stays at USD$140/t, we'll see when we receive the BFS.

HIO Price at posting: 50.5¢ Sentiment: Buy Disclosure: Held
16 Upvote

0 Great analysis

Reply

Top Stories

VTM

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

WNX

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble

Emerald & Azure score Digger & Dealer awards

EQR

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

M2R

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

Bitcoin: Current State of Play & Where to Next | Swyftx

ARD

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

SVL

Court of Appeal upholds environmental group's challenge to Silver Mines Ltd's Bowden project

IMD

IMDEX to receive $10M in out-of-court settlement with Boart Longyear over downhole tool patent

There are more pages in this discussion • 93 more messages in this thread...

First 709 Last

Add HIO (ASX) to my watchlist

(20min delay)
Last 2.4¢		Change 0.003(14.3%)		Mkt cap ! $24.39M

Open	High	Low	Value	Volume
2.2¢	2.4¢	2.2¢	$21.55K	948.4K

Buyers (Bids)

No.	Vol.	Price($)
2	599507	2.3¢

Sellers (Offers)

Price($)	Vol.	No.
2.4¢	951380	4

View Market Depth

No.	Vol.	Price($)
2	599507	0.023
1	669783	0.022
6	283214	0.021
10	439524	0.020
6	2456576	0.019

Price($)	Vol.	No.
0.024	865225	3
0.025	202440	2
0.027	195000	3
0.028	38230	2
0.029	170000	2

Last trade - 16.10pm 16/08/2024 (20 minute delay)

HIO (ASX) Chart

ABSOLUTELY COMPELLING ECONOMICS, page-709

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble

Emerald & Azure score Digger & Dealer awards

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

Bitcoin: Current State of Play & Where to Next | Swyftx

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

Court of Appeal upholds environmental group's challenge to Silver Mines Ltd's Bowden project

IMDEX to receive $10M in out-of-court settlement with Boart Longyear over downhole tool patent

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

ABSOLUTELY COMPELLING ECONOMICS, page-709

Top Stories

Victory Metals dips -8% even as company set to grow heavy REE resource at North Stanmore

Wellnex sees first special access scheme prescriptions for new Wellness Life brand

Week 33 Wrap: US recession fears forgotten; RBNZ’s surprise rate cut; more iron ore trouble

Emerald & Azure score Digger & Dealer awards

EQ Resources transitions historic Mt Carbine tungsten mine to owner-operator system

EIS co-funded campaign sees Miramar kick off maiden drilling at Bangemall, Gascoyne WA

Bitcoin: Current State of Play & Where to Next | Swyftx

Argent begins search for VMS mineralisation at Kempfield Cu-Pb-Zn-Au-Ag play in NSW

Court of Appeal upholds environmental group's challenge to Silver Mines Ltd's Bowden project

IMDEX to receive $10M in out-of-court settlement with Boart Longyear over downhole tool patent

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News