magnetite winners, page-3

To me its saying if you're not Grange Resources or Gindalbie forget about being a magnetite producer for quite some time.

Grange is currently producing in Tasmania and has a project on south coast WA. Gindalbie is developing the Karara magnetite project and can use Geraldton port up to 16mtpa before it needs expansion tonnage at Oakajee.

Others without infrastructure, relying on high capital borrowing and labour intensive projects are unlikely to get off the ground because the market is moving towards oversupply and lower revenues. Capital repayments exceed profits leading to negative NPV (like Jack Hills) etc. The trouble magneite producers face is iron ore prices are too cyclical within their long project payback periods - they cannot make consistent high revenue to cover capital repayments over 20 or 30 years. A bit different from a gold plant that pays for itself in 6 months.