Australia's largest stock trading and investment forum Australia's #1 stock forum

FAS

0.00%

0.4¢ fairstar resources limited

EGM, page-19

First 19 Last

Share
Profile

Follow
harryy

100 Posts.

22

25/06/14

09:38

Post #: 13567913
Share

Originally posted by In Da Hood ↑

Hi Zoomy & others,

Going off the non DFS $56/t figure from 2010 it's actually $36/t profit so I rounded down to $30/t which was CNF to Qingdao not sure if it factored in state royalties.

The MUIOF comment is in my own opinion based on the likely hood that Rio and Roy Hill's additional 100mt by mid 2015 will make the other minnows unviable And life very difficult for FMG as intended IMO.

GWR was talking $75/t break even at best, the magnetite is forgettable in the current climate as Grange Resources will probably be the next one Into receivership after Cairn Hill being the highest cost producer in oz plus Gindalbie and Citic have real trouble making any cash.

Which minnow do you like for the MUIOF? Most lack any DSO of substance, FAS has 24mt and probably 100mt more in SHIP north from a channel deposit such as Yandi fines which are the 2 lowest cost iron ore mines in the world Rio's being slightly cheaper at $16/t over BHP's before you add in state royalties of course the point is channel deposits are a gold mine.

Granted slightly lower grade than Platts 62% FE but the Japanese & Korean steel mills loves the fines so if it's anything like Yandi ore none of that is even bought by China leaving it impervious to a potential China slowdown In terms of ability to sell the ore price will drop but I'd say a further leg down May be on the cards. Hence my view MUIOF is dead unless MinRes or Cliff's have a wonderful cheap iron ore deposit to develop in a good transport location. FAS has the only credible deposit to lend against and they've repeatedly stuffed up looking for finance lol what a joke. In sight of retrospect a DFS would have been great and they should have used the GWR share sale to do just that in theory the alluvials on top are easy to mine so a closed loop freight review etcetera seemed like the way to go in a tough market when speed to beat your competitors to the port space is out the door doesn't look like such a smart decision to forego the DFS.
The tougher the iron ore market becomes the more likely a takeover target FAS.becomes I would imagine the one thing they aren't joking about is the fact the SHIP deposit is a unique and desirable deposit Someone will develop it.

Cheers

Expand

In Da Hood

You say ''FAS has 24mt and probably 100mt more in SHIP north from a channel deposit such as Yandi fines...''

Sorry to disappoint you mate- SHIP is NOT a channel deposit and nothing like Yandi fines. If it was, mining would have commenced long ago and FAS would not be mulling over which transport company to use to get a bulk sample of SHIP to the lab for test work!

h

FAS Price at posting: 0.3¢ Sentiment: Sell Disclosure: Not Held
5 Upvote

0 Great analysis

Reply

Top Stories

WR1

Winsome scoping study proposes low-cost operation for Adina lithium project

ALR

Altair Minerals hits high-grade copper and gold at Wee MacGregor, QLD

SNG

Siren Gold boosts antimony resource by 66% to 14.5Kt at Auld Creek, NZ

WMG

Western Mines identifies 2 high-grade zones at Mulga Tank in WA

PTR

Petratherm adds $1.6 to the piggybank ahead of SA titanium drilling program