The chairman said it was a Japanese steel Coy and Tony said they...

The chairman said it was a Japanese steel Coy and Tony said they are one of Cockatoo's current customers
Now they have had access to the data room for some time and they will get the full DFS next week to do due dilligence on the fine details
They know PLV are under pressure because of the markets and are concerned that they they will be forced to go with the one of the 5 Chinese mills or concentrators in the queue to jump in if needed
So the JTC are pressured by this and the need to source high quality product for their blending ( this quality is fetching a $36 premium in today's market)
They may agree to an option to continue exclusivity for $20-$30 million if it looks like going over 30 days (hurt money)
If negotiations stretch to the end of July and no money is forthcoming then I presume a bidding situation will begin with the Chinese

Now capex should be at least $150m lower for reasons mentioned and Opex will improve due to 3 levels of productivity mentioned leading to a cost in the $50's range

Tony doesn't believe that IO prices will go under $100 as 250 m tonnes of local chinese ore is costing $150 a ton to plant gates at the moment

Now the DFS will start in 2-3 months and if there is an agreement before then it will probably be a "lite" version as there wont be a need for the full works
Of course this means no BFS as there will be no need to raise bank loans

Even on current figures they say it is a robust project and there is still all the original interest

The most disappointing is the Isthmus results which is caused by a folding ore body which is sheared off
They may still get enough of the high grade off the tops to enable a 2-4 mt DSO operation in the short term
If not they still expect 20-30 mt to use in upgrading the hardstaff mix

Cockatoo will be finishing next year and the only ore left is blocked by the shiploader which will have to be removed to get at it
Maybe this can be barged to Hardstaff for shipment from Irvine

So all around I am still encouraged and anyway we will know in 5-6 weeks