Nothing much we havent seen before but some key takeaways.
Iron Valley
1. First revenue from Iron Valley 2H CY 2014. Construction underway in March. Giddy up.
2. Expected ramp up to production of 5mpta. Bit of shame the biggest thing in world markets right now is a China credit squeeze and IO and resources getting a bit smashed. Still at AUD $100t and 4mpta we can expect $40m a year. So bit of a kicker that production is to get to 5mpta. $50m a year is a PE ratio of 3 to 1. Hope the AUd drops down to 90c.
Bucklands
1. Cape Preston Port lease finalised- State approvals due this quarter. Seeking approvals for up to 20mpta capacity.
2. $810m to get to 8mpta. Equity and debt funding options "advanced" during the quarter. Asusming project debt financing of say 70% it means we need around $240m in equity. Given we have $60m in the bank we will need an equity partner to hopefully stump up most of that, or use IV revenue to fund our equity portion. Having an infrastructure type revenue flow on just shipping third party ore assuming a 20mtpa operation would be a good source of alternative non-IO revenue.
3. PFS to be finalised this quarter. Hopefully this is the cue for a financing partnership to be announced.
Exciting times.
IOH Price at posting:
99.0¢ Sentiment: Buy Disclosure: Held
