The 79c diesel price in the BFS was for the mine site only where off road rebates apply, although I agree the mine site fuel price is probably higher today.
The fuel cost was not disclosed for the cons transport quotes.
Fenix trucks 1.3 mtp/a of iron ore 490 kms to the Geraldton port for $50 p/t.
The AVL Fe/Ti cons value is based on 70% of 62% IO fines, at today's IO price us$110 for 62% fines = us$77 p/t * 1.50 = a$115.5 p/t. The current IO price is strong but trucking the cons to Tenindewa would still be viable if/when the IO price fell to us$70 p/t.
Then there are the savings by having the refinery at Tenindewa, cheaper gas, the northern interconnector pipeline tariff $2.97 per Gj. Less transport cost for reagents (soda ash) and no FI/FO for the refinery workforce.
BTW.....TMT still has not released a DFS.
AVL Price at posting:
2.3¢ Sentiment: None Disclosure: Held
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