For Ajax (and anyone else who may upvote his posts and be genuinely concerned)... you say;
"The current iron ore price for 57% Fe is the elephant in the room everyone would like to think is not there."
& you keep sharing public IO prices so often, each time sounding really worried, even though you don't own the stock, so I think the main points which may help to clarify and put these back into perspective, are:
1) You keep quoting Custeel "Seaborne" public prices, which are approximated, and arguably also arguable. LOL
But Page 1 of the July 9 2020 announcement clearly specifies that feasibility figures use the "CFR 62% Fe Platts benchmark pricing index"... which are available to paid log-in accounts, and can vary daily by up to 10% between the two methods of pricing.
2) You keep suggesting that we need to work out a price for the 57% Fe.
But we do not, because Page 7 (Ann: 22-8-2019) re the Original 2013 Feasibility Study clearly specifies that:
we need only $90.35US/t at only 56% Fe....
and exchange rate of $0.68 to achieve a whopping 300% rate of Return.
... typing that again slowly...
3 0 0 % Returns
At this point, do we care if it's only 260%?
or only 160%?
Way back in 2013, under a completely different economy, sure.
But now, post covid etc..? Nope. Not at all.
(For reasons below).
Sure, you might also try to argue that costs have also changed since 2013.
eg In AUD, the feasibility "only" included:
* Mining Cost A$2.20/t
* Crushing and Screening Cost A$8.00/t
* Transport Cost A$22/t
* Administration Cost A$4/t
* Government Royalty 5.35%,
& * Clearing Costs @ $4,410/hectare...
Personally, I don't know how much of those have changed, but imo it hardly matters because:
a) refer back to the big fat safety margin of 300% Returns...
b) I'm pretty sure that list of expenses was before the last round of logging removed all the biggest commercial trees, and even if it wasn't;
c) it was certainly BEFORE the wildfires that burned most of that whole district down to ash a few months before covid.
Then ON TOP of all that 300% juicy profitable cream, there's also the giant chocolate coated cherry of $66Million in unused tax losses yet to offset...
and that's only up to June this year.
I'm keen to see how fat and sweet that grows when all the wet processing plant expenses get finalised and added to the tally....
So do we care if the price of IO completely falls off the planet...?
Heck no.
VMS is not an IO company at all, really.
Riley's IO is basically just a freebie "shortcut" to the proverbial Aladdin's cave across the creek at Mt Lindsay... or at Thor... or at Kulin...
Riley won't even last 2 years before that whole tenement is restored back to lovely green commercial forest.
Best of all, I'd argue that we don't need Riley at all, really, because;
a) the cost for scoring multi-billion buckeroonie profits from Mt Lindsay is now down to a "mere" $50mill via the Underground Strategy...
b) the costs for a small swarm of drills to nail a quick JORC at Thor & Odin is barely $3mill.
Crikey, hand me my cheque-book, baby. That's barely a half decent beach house in exchange for a whole string of tropical islands.
I'd hock the kids, the cars, the farm & my soul to bankroll that all by myself.
Let's also remember; it's not just Tin at Mount Lindsay... it's #GREENtin.
(For newbies who may not be aware:
Green Tin = All environmental protection measures exceeding the new highest international standards
+ without any poor little starving African orphans being used as slave labour in death pits
& without bulldozing large tracts of genuine rainforest for open pits
& without scraping the ocean floor to kill off all the tastiest seafood baskets. )
In the meantime, you can either keep sweating the small stuff at Riley and quibbling over a mere $100 to $220/tonne for 2 years (while the BOD work steadily and responsibly towards a healthy, cheap, reputable and green free-carry for us all with everything else)...
Or you can set your sights where they ultimately should be:
on everything else that starts at $6000/tonne (for the copper) and works up to $3000 per OUNCE (palladium) for 8 to 40 years, at least, at any one of those 3 other monster profit makers.
As a bonus, perhaps we also score all the other little stashes of REEs and Critical Minerals at each project along the way... too many to mention here.
Or keep out, as you are now without any shares to ensure that you completely miss out.
.
.
Bottom line: does the proverbial elephant in the room care what price or grade the Fe may be...? Nope. Wake him in 2 years when Riley is replanted as a lovely green forest again.
But keep doing your own research, especially if you disagree with any of this.
Cheers & best wishes in any case.
GLA
(20min delay)