Ann: IPO of Juno Minerals Limited, page-35

Not only does it cost a $billion or two to develop a magnetite mine it normally ends up as an iron ore concentrate, the most profit is made when its converted to iron ore pellets. There is only one iron ore pelletizing plant in Australia and that is Grange in Tasmania. The iron ore slurry is pumped from the mine site to the pelletizing plant some 80km away at Port Latta. There is money to be made from iron ore pellets, you only have to look at GRR report today where they made some $100 million profit in the Dec Qtr. The pellet price is US$244.80 /tonne where US$51.30 is the pellet premium.
Grange has been looking for a partner for its Southdown project in WA with 2 billion tonnes of high grade magnetite for 10 years, but nobody is interested. You only have to look at the disasters like GBG and Citic to see how easy it is to go broke when starting a new magnetite mine.
JMS is wise to spin off the iron ore assets as they're basically useless, the small hematite project as DSO maybe worth digging up, but its so small its hardly worth the effort.
Rather than wasting money buying into the IPO investors would be better to invest in an iron ore producer who is already making money as you never know how long the boom prices will last.