4) CAP's 50yr mining is based on POTENTIAL... ie if finding more mag Fe. ROY & PDY say they can get to 8 Bt. ARH can purchase total 150 Bt from Mineralogy (own by Clive Palmer, who is also 67% holder of ARH). ARH's mining should be about 1000-2000 YEARS.
5) CAP owns 60% of 1.4Bt @ 15.5% (130mt contain Fe) Vs FWL owns 570mt @ 27.5% (157mt contain Fe). FWL has more resources than CAP & only one-third of mc. FWL has TFA to fund expenses.
6) CAP's IRR is 23%, which is a very average project. FWL's IRR for MPI should be around the same mark.
7) CAP's CAPEX is $3B vs FWL's MPI is around $700-800m with similar IRR. When funding gets tough, it would be hard to fund big CAPEX projects like CAP's. Rio just cut back billions of Fe expansion projects.
LCG Price at posting:
8.3¢ Sentiment: Buy Disclosure: Held
