I think it is more likely that the net tonnage would be nearer 250m than 370m - still a good number. Whether it is worth taking it up to a 68% Fe is highly questionable (cost vs benefit). It is possible that they would get a premium for the 68% product but that will be largely dependent on the spot price at the time (well bid or well offered). If the latter premium will be small if at all.
It is very odd and in my opinion very out of order that a listed company would announce a very large funding package with only a reference to "the funding will be provided by private Australian equity investors"although there is supposedly an executed Shareholders agreement in place. Is it Andrew Forrest, is it Russell Crowe, is it Julia Gillard, is it Barry O'Farrell - who knows!!
One must assume that there is a huge amount of previous valuable data from the old MMX days os not much to do on the geological front. If this is so good and fund-able where are the off takers who would probably eliminate the need for a BFS by project funding the whole thing and agree to buying the end product - all too easy.
Can't wait for the next announcement!!
PDY Price at posting:
3.3¢ Sentiment: Sell Disclosure: Not Held
