Thanks for linking us that! Agreed - some very juicy insights from the China MMi Daily Iron Index Report 21/12/20:
(I) Seaborne CFR Iron Ore spot prices 62% Fe fines (IOSI62) up 10% to US$179.60/dmt and quite possibly at this rate headed to US$200/dmt by Jan 2021. Brings an additional A$168m post-tax project NPV (A$30m * 8 * 0.7) to my ‘Current’ scenario 1, which assumed US$150/dmt pricing. This alone gets us to a fair value of approx $1.04 per share (> X4 returns to current SP).
(ii) Fall in both Iron Ore and Steel inventories since Oct 2020 which should positively impact demand and pricing.
(iii) Price premium attached to 65% grade Fe. Based on this FEX could look to fetch a 5% price premium for its 64% grade Fe across the life of the project.
Anyone have any insights on whether FEX would look to hedge the current iron ore spot price and lock this in throughout the project life? Is this something that is available to junior miners in the iron ore space?
Cheers,
L
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27.0¢ |
Change
0.005(1.89%) |
Mkt cap ! $194.5M | |||
| Open | High | Low | Value | Volume |
| 27.0¢ | 27.8¢ | 26.5¢ | $481.2K | 1.764M |
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| No. | Vol. | Price($) |
|---|---|---|
| 9 | 1008877 | 26.5¢ |
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| Price($) | Vol. | No. |
|---|---|---|
| 27.0¢ | 239848 | 3 |
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