jtaylor ,much of the costs of extracting and separating the magnetite ,is already covered by the natural extraction process of producing the copper concentrate .
CDU will also have rail and port which is normally a huge cost for new entrants to iron ore.
Magnetite once beneficiated ,is very high grade,which China needs to blend with their very low grade (mud) .
Hematite iron ore grades around the world are reducing ,and Magnetite is becoming very important because it can easily be beneficiated to +65% iron and commands a premium price.
CDU will be making the big profits from the Copper but as the major costs of extraction will be already accounted for ,then the real cost of producing a saleable magnetite product would be expected to be much lower than a pure iron ore producer .
Your comments are way too simplistic in my opinion .
CDU Price at posting:
$1.83 Sentiment: Buy Disclosure: Held
