Further to previous post, pricing used in the study looks to be in line with current market pricing (as opposed to an inflated forecast assuming future demand like IXR, CHN etc). From their earlier study below. Also assumed exchange rate of 0.70 AUD/USD is also conservative compared to say CHN exchange rate 0.67 (all these assumptions add up either conservative or optimistic).
Their largest operating cost is land freight, so senstive to underlying trucking costs (diesel, labour) but this also presents a huge opportunity with increasing the con Mn grade with additional processing to deliver larger margins. E.g. if they produce a 40% Mn grade product with additional processing, say the processing cost increases by a whopping 50%, that's another $6/ Con tonne in opex, but they simultaneously reduce land freight by $16/Con tonne and sea freight by $5.60/Con tonne for a total saving of around $22/Con tonne. Plenty of upside here with further metallurgical development.
FRB Price at posting:
15.5¢ Sentiment: Buy Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)