Iron ore prices keep jumping higher on supply fears.
Massive global growth underway as global economy recovers from COVID19 pandemic lock downs.
CAP management likely close to resolving legal dispute with Pure Metals. ( "CAP has taken legal advice and is confident in its ability to hold Pure Metals and associated parties accountable for its corporate conduct to date".)
CAP has a very low MC of $17 Million compared to peers like MGT with a MC of $233 Million.
BFS funding of $35 Million likely to be secured in coming months. "Mitsui states very clearly that it wishes to re-engage with CAP and its management team to re-open negotiations over commercial terms of the new Hawsons funding agreement once CAP regains its stability."
• World leading metrics
• 70% Fe product
• US$48/t opex. CFR China
• US$1.4 Bn capital cost pay back in <3 years at US$100/t (65%Fe)
• Resource 330mt concentrate product
• Production 10Mtpa for 20 years, potential to expand and extend
• Rail line 396km to Port Pirie, 12mtpa spare capacity
• Port options: Port Pirie ~20Mtpa capacity Whyalla 11Mtpa spare capacity
• Production targeted in 3 years.
"The iron-ore boom comes as China’s steelmakers keep output rates above 1 billion tons a year, despite a swath of production curbs aimed at reducing carbon emissions and reining in supply. Those measures have boosted steel prices and profitability at mills, allowing them to better accommodate higher iron ore costs and potentially front-load production ahead of more environmental restrictions.
Steelmakers in the rest of the world, such as ArcelorMittal SA, are also enjoying a boom as demand bounces back from pandemic lows.“There is a chance that ex-China demand can come back to such an extent that we still see steel demand pick up globally and
that will see iron ore demand remain at these elevated levels,” CBA’s Dhar said. "
https://www.bloomberg.com/news/articles/2021-05-10/iron-ore-turns-very-very-hot-as-prices-jump-10-in-minutes
