Ann: 10km Magnetic Strike at Satrokala Iron Ore Project, page-26

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thecrabpest

2,469 Posts.

1674

03/04/24

14:17

Post #: 73168834
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Originally posted by Mong1967: ↑

From an insto: "We think its green product is going to be in demand andpreferred in China. Here’s why:
China’s cities are filled with smog and pollution.
Steel making is a major offender in causing air pollution andcarbon emissions.
15% of China’s total greenhouse gas emissions came from itssteel mills.
In order to combatthis, the Chinese government has mandated the steel industry to significantlyreduce its emissions.
China is aiming to achieve “peak carbon” emission by 2030 andbecome “carbon neutral” by 2060.
Globally, to go electric and switch to clean energy, 3.5billion tonnes of steel will be needed over 15 years to build energy grids, wind farms, solar farms, nuclear plants and electric vehicles.
It defeats the purpose if the traditional steel making processreleases loads of carbon.
One way to make green steel is by switching coking coal andblast furnaces with clean energy like hydrogen - a new technology
Bill Gates and Amazon are both backing ventures creatingtechnologies to process iron ore into green steel - steel made with lower or zero carbon emissions.
BHP, RIO, FMG, Vale are all making investments in green steeltoo.
However, the quickest, cheapest way to make greener steel isusing greener iron ore.
Green iron orerequires less energy to be processed into steel.
Green iron ore needs to be:
·High grade orprocessed to higher grades using renewable energy
AND
·Have low impurities(less energy required to process it)
The bulk of iron ore used in China is purchased from BHP, RIOand Vale - it is lower grade and NOT considered “green”.
High grade, low impurities iron ore (like Bekisopa's) typically commands a 30%+ premium to the spot price (Iron Ore 62% FE at Singapore price). But I'm sure TheJerry01 knows this... his post above is irrelevant mudslinging. So at <$50 OPEX you'd currently make a margin of ~$80/tonne. That's a massive pipe to dream about

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@Thejerry01 that ~$80/t is in USD, or $122 per tonne in AUD terms.

Part of me hopes you put your bias aside and buy some shares and make some good money, the other part of me wants to be able to say "we told you so".

There are a couple of challenges ahead, but nothing that's insurmountable, and we are way better placed than many other speccy Australian iron ore hopefuls.

AKO Price at posting: 16.0¢ Sentiment: None Disclosure: Held
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0 Great analysis

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