Daz... FMG paid over the odds as it's much harder to develop a resource which is CAPEX expensive... Ummm.. Shifting over lay, lifting it, trucking it, rail network, wharf infrastructure, tugs... whole different ball game with a lot more potential choke points for delay, which creates potential schedule delays.. 17-20% is also what folks were paying as mortgage rates at one stage (yes here in Oz...) Of course FMG went to a market where they weren't seen as a low risk venture. So Twiggy had to bend over slightly and take it, he was the buyer for finding at the time, as he didn't have a lot of proven customers, as you are also aware that he's iron ore is a lower fines grade, (not 62-64%). With other larger established players with higher grades, financiers weren't flocking to FMG initially.
Conversely, ABR's process... Identify the spot, (on the ground, after doing the testing) identify your production target zone. Flow fluids at the engineered / determined head temp. Then process the extracted fluids.. In plant equipment that can be manufactured in a modular fashion to be assembled on site..
Do you sort of understand the difference in risk between two compatible 'mining' operations here?!
I'm sort of failing to understand where your research leads you? or what you aren't reading when you decipher information. I mean he'll mate, I also hope the price goes down as I'll pile in and buy even more! As long term, I personally acknowledge that this is a less risky play..
Financiers will be all over this like flies on Twiggy's best steers tail, It's already been deemed, ABR's commodities mix as one of the key rare commodities which strategically the US wants to produce locally. Sovereign resource security, can you understand that concept? USA government isn't in the game of doing it themselves, though they have levers which they can operate to enable the surety of eventual extraction, towards market provision..
I don't know or wish to assume your background or experience mate, but we are well over glass half full on this venture. If you aren't seeing it, then mate there are plenty of other options out there.. Cause sure as hell, I'm noticing new diamonds every day...
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