Ivanhoe Mines' Freight/Tansport cost is USD$103/ton! LOM: USD$113/ton.
Chinese research note also stated a standard freight is approximately USD$100/ton from Lubumbashi to China.
Chinese listed company-HuaYou (MC: A$10billion, also is the second largest shareholder of AVZ) just announced profit guide for last year: NPAT is expected to be A$321m - A$370m HuaYou DRC's mines are all 2200kms away from the port!!! Similar to HuaGang,
Huagang in DRC financial performance for Jan to Octobor 2017:
- Gross revenue: USD$631m
- Net Profit: USD$280m
Very high net profit margin!
Once the USD$285m road upgrade is completed by China Railway Engineering Corporation (Its related individual is AVZ's JV partner and also is currently the largest shareholder of AVZ), freight should be significantly reduced, imo.
