Some fair comment there mate. It is a massive project, if successful, it will mint a lot of millionaires. The macro outlook for the next 2 years is extremely important for HIOs success in raising the funding for capex. In terms of the numbers, you are fairly out. No way on earth it is going to cost $8-$10 bil when the experts (I am pretty sure they know a lot more than what you know) estimated $1.4 bil for 10 mtpa. Even if doubling that would take it to less than $3 bil. You don't fire up a barbecue machine and burn the dollars to spend $10 bil. You seem to have some technical knowledge but I can clearly see financials are not your cup of tea. So I suggest you stay out of that. The reason I am saying is that you mentioned MGT all in is $54 and $40 after expansion. Its completely wrong. The $54 and $40 is the breakeven fe 62% price not the all in cost. The all in cost CFR for FMG and BHP, the lowest cost producers of Hematite ores are nearly $40 now. How can you say MGT a prospective magnetite player can produce at $40 (no way). BTW I am a fan of MGT and held over 10 mil shares at one stage with average of 1.5c. I sold out most in the high 7cs and 8cs and only hold small position currently. What that means I follow it closely. Your numbers are screwed with MGT and so is the capex estimate of HIO.
HIO Price at posting:
34.0¢ Sentiment: Buy Disclosure: Held