BCI / MIN - MIN Broker Call following Results

MIN announced their results to market back on the 11th August and their was a subsequent Broker Call involving CE and other senior Managers, which was not open to the public.

MIN recently post a transcript of the Broker Call and there were a few very interesting references to BCI related dealings.

These comments seem to raise questions over IV's ultimate mine life. On the flip side, Bungaroo and Kumina could be operating by 1st half 2023.

For those interested, the transcript can be viewed in full on the Min Res website.

IRON VALLEY (Part of MIN's Utah Hub) References:
CE Comment - "Iron Valley will continue forward, but at a reduced rate. Wonmunna is ramping up from five to ten million tonnes over the next few months and Lambs Creek, we think we'll have that on line by about the end of next calendar year. So that's our Utah Hub, and good mine planning wrapped around that. We know where we're going with it."

BQ - "First one is around costs, especially of the iron ore division. Just wanted to talk around Iron Valley at around $100 a tonne and then also Yilgarn moving up a bit. How shall we think about this? Is this the new cost phase for the business? Do you think this continues into the future?
CE A - I think those were under some cost pressures with COVID around labour and a range of other things that have come along. We’ve also had an awful lot of wet weather over on this side of the country over the last few months. But they are relatively, Iron Valley’s a relatively highcost operation, it always has been, and we’ve always had a red flag out there with that.
FC A - In relation to Utah and specifically Iron Valley, bear in mind that we operate that mine through a minegate sale arrangement with BCI so the royalties on that project have gone up significantly as the iron ore price has moved. So, you would expect those costs to come down as the iron ore price comes off.

BQ - "Can you comment on the timeframe for Wonmunna to ramp to 10mt and do you see Lamb Creek as replacing Iron Valley when it operates?"
CE A - "Yes, look I think we can probably be, Wonmunna will probably hit that number around the end of the calendar year. Look, yes, I think the Lamb Creek will probably eventually take over from Iron Valley. I think our impurities at Iron Valley are getting out there a little bit and we’re currently blending, but at a point in time, yes, I think that Lamb Creek and Wedge will probably take over."

Mac note: Both Lamb Creek and Wedge tenements were IOH tenements years ago......

BUNGAROO/KUMINA (Part of MIN's Ashburton Hub) References:
BQ - "Just keen to understand the structure of that with this Red Hill acquisition. Is that likely to be brought into the initial production scenario or do we still stick with sort of Bungaroo South as the base feed for the first few years?"
CE A - "No, look, at the moment, I mean our focus is basically on Bungaroo South and Kumina. That's what all our planning is wrapped around. Going down the path with the Red Hill. I mean look, it's simply an opportunity where obviously we want to gather as many tonnes in the region as we can for the long-term. But the offer we've got on the table, it's obviously waiting on shareholder approval. So before we get ahead of ourselves, we'll just wait and see what the shareholders think of that offer."

CE Comments - "The Ashburton Hub; 30 million tonne operation. Incremental parts of it have already started. It's approved by the Board, but subject to us landing the final approvals. So the port approval is due out imminently and we've got a little part of the corridor for the off-highway road to get approved. So we're aiming for feet on the ground out there in about September and we're looking for first ore coming out of there in the first half of 2023 and that will be at the back end of that first half. A great project."

"The Ashburton Hub, as I said earlier, I mean it would survive, it would make money in a downturn environment and certainly any of the downturns I’ve seen over the last 15 years, it’ll still contribute good cash."