$1.00 price target, page-83

Thanks for the reply Jimmy.

The project description on the Fairstar webpage has some tables of hematite and magnetite. The hematite intersections range from 32-34% iron. This hematite may be different to the first stage of gravels processing, though I don’t see the grade specifically for this material.

However, they say that they have a resource of 93Mt of gravels, a hematite concentrate recovery of 18%, for 18Mt of DSO hematite product and 15% recovery produces 19Mt of concentrate. The grade of the concentrate was estimated as 58.4%.

My point of the cost is just for the sake of comparison because $50 per tonne was quoted earlier today. $50 FOB is the same as $(50 + shipping) CNF/CFR, so CFR would be higher.

It just seems to me that with a recovery of 15-18%, you have to mine and upgrade a lot and so the costs will be higher than a true DSO operation in the Pilbara with cheaper mining and shipping.

Would be very happy for clarification if I have it wrong.