An extract from today's AFR - AGO related, yes - but clarifies TaneNui's comments re cost guidance.
....The miner’s (AGO) infrastructure needs were again highlighted on Monday when it announced that it, together with its joint venture partner Altura Mining, is pushing ahead with the Mt Webber mine development on Monday.
The Mt Webber ore will be trucked to Utah Point port as part of the first phase development. Atlas’s shares closed 5.5 per cent or 5¢ lower following the announcement.
Credit Suisse said the cost guidance for developing the Mt Webber mine was “disappointing” and implied higher than expected haulage costs and port charges.
“An estimated $39 a tonne cost of port and haulage highlights the opportunities if a rail deal can be negotiated, so a rail deal would be a catalyst for Atlas,” said Credit Suisse analyst Matthew Hope.
Mr Brinsden acknowledged the major benefits of achieving a rail solution for Mt Webber and its other mines.
“We believe Mt Webber is a good mine as a trucked operation but, in the future, it could be a great mine with a rail solution. Thinking along those lines makes perfect sense,” he said.
AJM Price at posting:
13.0¢ Sentiment: LT Buy Disclosure: Held
