A rough estimate of the cons transport cost.
Mine to Geraldton port 535 kms.
1mill wmtp/a = 20* 140 tonne road trains per day.
one litre of diesel per km round trip = 7.64 mill litres @ $2.10 p/l = $16.044 mill.(20 cent fuel rebate not included)
fuel is approx 1/3 of costs = $48.132 mill total cost p/a. Plus port storage.
Fenix haulage contract 490 kms to Geraldton port.
1.25 mtp/a $36 mill p/a based on $1.34 per litre of diesel.
Revenue from the cons.
900,000 t p/a @ 30% discount to 62% fines, currently 62% IO fines us$117 p/t.
using us$90 p/t 62% fines and 30% discount = us$63 p/t Fe/Ti cons.
900,000 t p/a @ us$63 p/t = us$56.7 mill fx 1.57 = au$89.02 mill p/a.
The purpose of moving the refinery was to access cheaper gas, local workforce and shorter distance for reagents.
I hold shares in Fenix, AIMO.
AVL Price at posting:
2.7¢ Sentiment: None Disclosure: Held
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