Here is some research I have been doing into production costings...

Here is some research I have been doing into production costings for Wilcherry Hill. After capital cost estimations were blowing out I was becoming worried about operating cots. Any expansion on this would be most welcome.

I have based this heavily on the IMX Resources Cairn Hill Fe-Cu-Au project near Cooper Pedy which has ramped up for over a year now so costings are firm.

Some comparisons:

Cairn Hill:
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90km from pit to rail siding by road.
~840km by rail to Port Adelaide.
Special purpose containers used to store ore at port, loaded by tipping onto ship. Containers to be returned to Cairn Hill.
Ship size being loaded - Panamax "adds $8-$10 to costs" relative to a Capesize vessel.
"Rail is 40% of the FOB costs"
According to the most recent activities report "the mine operation is currently trending towards the target of cash
operating costs of $75/tonne"

Analysis:
Rail costs ~ $30/ton (40% of %75)
Road costs ~ $20/ton (guess)
Mine costs ~ $5/ton (guess)
Port costs ~ $5/ton (guess)
Shipping ~ $15/ton (guess)

total $75


Wilcherry Hill Stage 1:
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~140km from pit to Lucky Bay by road.
Containers loaded onto barge then tugged out to ship.
Containers tipped into ships hold.

Analysis:
Road Costs ~ $25/ton (guess)
Mine Costs ~ $5/ton (guess)
Port/Barge costs ~ $15/ton (guess)
Shipping ~ $10/ton (using Capesize vessel?)

total $55/ton (which is less than Ian's estimate of $60-$65 per ton.)

Obviously a whole lot of guess work is involved here, but if you believe the IMX resources figures of $75/ton with %40 of that being rail, it is hard to see how IFEs costs could come out at more than $60/ton.