Iron Ore and Uranium.This is what Lincoln Minerals floated...

Iron Ore and Uranium.
This is what Lincoln Minerals floated on.
Must admit I pretty much wrote these projects off.
But magnetite on Eyre Peninsular and South Australia could become a very big thing.
With the world rapidly trying to decarbonise making Green Steel, is a very hot topic.
Eyre Peninsular in South Australia in theory could probably make the cheapest greenest steel in the world.

Ingredients required.
Magnetite.
Already being mined at Simec's mine just to the north of Lincoln's tenements feeding the Whyalla Steel mill.
So we have a functioning magnetite mine right next door to our resource.

Green Energy
South Australia is on target to reach net 100% renewables by 2027
Around Whyalla, Australia's First Green Steel Hub, Tilt Renewables have planned to build a 1050 MW Wind Farm at Nonowie
Construction of Stage 3 of the existing Lincoln Gap wind farm is about to commence adding another 256MW to the immediate area.
There are also plans for around 300MW of Solar around Whyalla. These projects are ready to go to feed the Green Steel Hub.


Renewable Hydrogen

The South Australian Government is chipping in $100M to build a Hydrogen Electrolyser.
This will be used to feed the Steel Furnaces.
Blast Furnace Steel is extremely carbon intensive.
Because to turn Iron Ore (Iron Oxide) into steel you need to heat it up to great temperatures. But this is not the most carbon intensive part.
The Carbon emissions come from removing the oxygen from the ore. Currently the formula looks like Iron ore (Iron Oxide) + Coal (Carbon) = Iron + Carbon Dioxide


Method to make green steel
Heat the Magnetite ore using Magnetic Induction, or Electric Arc Furnace.
Introduce Hydrogen into the furnace to combine with the Iron Oxide of the Magnetite.
At high temperatures the Iron Oxygen and Hydrogen will combine to form Water(steam) and Iron.

Magnetite Ore (Iron Oxide) + Hydrogen = Iron + H2O.

Green steel has now been created, which will sell at a premium due to new EU rules coming into force.

While SIMEC has enough magnetite ore to keep it going for a few decades.

Another entrant could easily step in.
Unlike monster blast furnaces, Electric arc furnaces are much smaller which will allow smaller entrants to compete in the steel industry.

This iron ore project is real and has a serious chance of getting up and running in the longer term
$75M has been spent drilling and developing the deposit, and in todays dollars that's probably $150-200M
Not sure what it is worth in a deal with someone, but could be worth way more than our current market cap.

Would be nice to offload the project, retain some upside exposure.

The company will need to raise some cash soon, and I suspect we will either see what it is, or get a big hint in the Quarterly due out in the next 10 days.

Jonathon Trewartha was hinting at a deal that would hopefully provide the cash through the divestment of part or all of this asset.

Could be some good news coming.

If we sold it for $20M which would be 10% of what was invested in it, that would probably more than double our market cap and share price

Interesting days ahead