I finally had time to give this announcement a squiz, and there are a few things imo that make me a bit cautious about it. First, they have not actually said how much money they are going to make from the contract yet. They still need to finalise a mine plan before they can work that out properly, so right now it is hard to tell if it is a big win or not.The iron ore resource looks decent, but it is not huge compared to other mines in the Pilbara. Because of that, the mine might not last as long as some of the bigger ones, or the costs per tonne could end up being a bit higher, which might squeeze profits.There is also a bit of a messy connection between Macro Metals and the company that owns the project. Two of Macro’s directors actually own big chunks of Project Rusty. Even though they are ticking the right ASX boxes to get approval, you would still want to keep a close eye on that because it could easily turn into a conflict of interest if it is not handled properly.Another thing is that the whole project depends on getting all the final government approvals and securing port space at Utah Point. Until that is locked in, there is a real risk that delays or roadblocks could throw off the whole plan.They are also relying pretty heavily on another company, RE:GROUP, who are running the show as the head contractor. If something happens on their end, it could definitely affect Macro too.And finally, the resource information they are basing this on is from 2019. Macro says they are going to recheck and update everything, but until that happens, they are still leaning on old data, which is not ideal.Overall, a lot needs to go right to get this moving. It has potential, but there are plenty of hurdles they still need to clear first.
DYOR
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