Yes it is an interesting announcement. My rough as guts calc on Section 5 was over 30M tonnes. If NVI can get to around 300Mt at 20% Fe, then they are looking good for around 15-20 years at 4-6mt concentrate pa. If they can get the OPEX sub US$50 (FOB) for the increased concentrate production then they should be ok, even if the Fe market tanks. Can you remember what the market projections are for Magnetite in 2014/15, was it US$80-100/t FOB?
Will be interesting to see the CAPEX too for the increased throughput. One thing I dont understand is the big difference between the Indicated Mineral Resource at West - 100Mt and the Probable Mineral Reserve at 59Mt, around a 60% "recovery". Would be keen to know why, although it might be in one of the scoping study documents.
NVI Price at posting:
$1.14 Sentiment: None Disclosure: Held
