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21/12/23
14:17
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Originally posted by That Fundamental Guy:
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Whilst the recent price rise may look like a spike on no news, it may be that others like my self have taken a little while to digest some of Jeremy Kirkwood's comments at the AGM. ASX rules obviously restrict exactly what he can and can't say. However, he did mention or infer that Hawsons capital and operating costs would be similar to those reported in a recent presentation from Champion Iron. I have looked up that presentation and crunched some numbers on a rough NPV. I hope to get some time over the break or new year to post my thoughts and some NPV/IRR scenarios. Whilst they are not the crazy NPV numbers that some talked up well before the BFS slow down, I think they are realistic and they support a solid investment case for a mine. Add that to the market demand and strategic need for high grade magnetite as a green steel solution, and I feel there is a high probability of attracting a JV partner and Hawsons being developed. For anyone serious about understanding the iron ore market, the need for significant additional amounts of suitable feed stock for green steel, the role high grade magnetite will play and how high premiums for such products will be achieved, use some of the down time over the break to read Champion Iron Capital Markets Day presentation. Its a fairly long presentation, but includes industry experts (not just Champion directors) presenting on steel making now and the future along with the challenges and solutions for the steel industry. Also, further drilling and drill results will be expected early in the new year and given the progress update, the final results are expected to be positive. Therefore, recent buying could be a bit of getting in before the full results are announced.
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Absolutely agree @TFG . The AGM was very informative for those willing to listen.....and a drilling update before we all break for the season, what a great touch.