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We’re obviously affected by the overall market moves as well. USA down another 2% last night, so expect a red day Monday for us too.

Could whomever posts the high grade iron ore chart please do so again? Or advise where to see that? I don’t think HC allow links, so maybe advise what to plug into a Google search to find it please?

Iron ore has been rising fast on supply issues. With Vale being the main one, who said heavy rains and delay in obtaining a regional license were to blame. However, one of the main factors in the longer term ore price is the overall health of the global economy as that will influence the amount of steel being made. If the market dumps badly, expect iron ore price to retreat as well. We have some insulation against that with our very high grade, which is always in short supply and eagerly sought by steel makers.

The A$/US$ also has an impact. The recent stronger A$ means our profits when reported in A$ will be lower. Offset a bit by our costs also being lower in A$ terms, but the net result is stronger A$ = lower profit.

Let’s hope the global outlook is looking ok as we move into production later in Q2.

If the market really tanks, it will then depend on our final net margin. Need to see final C1 total cash cost and contract price for offtakes to know what that will be. Indeed, the offtake deal is critical, as it’s generally a take or pay deal. So regardless of the iron ore price, the buyer has to take the agreed ore and pay the agreed price.

With the market yawning at the quarterly, interest has left TI1, as we can see from the much smaller number sitting in the market depth. As usual for emerging juniors, we need to be patient for the known milestones that are coming. But with thin depth, any decent announcement will shoot it back up again. Difficult to trade I would think. Although the poster who advised selling the other day seems to have achieved near the top. Well done them.

Cheers,

Ned.