no feasibility study necessary?

There seems to be a notion that SHIP is so robust a project that a prefeasibility study (PFS) and definitive feasibility study (DFS) is unnecessary. It is quite ironic that the very reason a PFS and DFS is done is to actually determine exactly this ie. how robust a project is. Essentially there is no alternative, other than working on the back of an envelope-literally. There is no such thing as an analysis or study that is ‘just as good as a PFS or DFS’. If it is as good it quite simply would be one!

A PFS, moving onto a DFS de-risks a project and makes financiers comfortable in making a decision on investing capital. It also determines the terms of any arrangement. A DFS will also inter alia define conceptual or basic design, basic engineering and marketing etc. that on financing will revert to detailed design, detailed engineering with an offtake agreement in place or well advanced.

From what has been disclosed by FAS it appears very little of the above has actually been achieved and it is no wonder that this Company is incapable of advancing the project. If the Company does somehow miraculously achieve some sort of financing deal it will very likely and unfortunately be on unfavourable terms, particularly for shareholders- why? Because of RISK. In the absence of any decent study (sorry a JORC does not cut it) SHIP remains a very risky proposition.

The next Atlas Iron? Please, you are dreaming…do some research. Delays due to iron ore prices? More excuses…… And for the very reasons given above I don’t hold but monitor this thread, largely for entertainment reasons.

Those who have bought in at rock bottom prices-well done, you can probably play this stock for all its worth and make something of it – but don’t gloat and chastise those who expect far better. Those who have lost heavily on this stock have every right to demand answers from a management team that has simply not delivered and earns very generous wages by any standard.

All IMO of course. DYOR.

h