Industrial alluvial garnet is "pink gold"A hidden industry...

Industrial alluvial garnet is "pink gold"

A hidden industry really with sandblasting and waterjet cutting main industries
Industrial alluvial garnet of the right grade size is always garnet of choice over hard rock alluvial.

The key to Luck bay is it potentially has greater than 50 year mine life and majority of capital required has been already spent.i.e expansion capital will be significantly lower as all major infrastructure has already been put in.

Industrial garnet sells for $450 to $700 per ton.
If you look at similar open cut at surface sand mining operations ,operating cost per ton is circa $140 per ton.
The transport and logistics is high because garnet is heavy.

My guess, conservatively $100 ebitda per ton should be achievable.
Remember they are also putting in a wind turbine farm so operating costs per ton over time will also drop and less reliance on diesel which is a good thing.

so say 50 years at 300,000 tons per year at 100 ebitda per ton is $1.5 billion in revenue.
Industrial garnet is needed everyday ..you cant use waterjet cutter without it and sand blasting jobs more often than not specify garnet because of it toughness and environmentally friendly

Mineral resources have always just got on with the job and never over promoted.
i suspect this is happening here but i do know australian garnet products are with customers and being used now.

this stock is ridiculously cheap and a brokers report released late last year has valuation of 8 cents per share which i reckon is conservative