future of midwest mining uncertain amec, page-2

Wowbagger...any reason why you're not posting this on FWL's neighbour's thread i.e AXO???????? Surely it concerns them too.

Oh loook what I just found another downramp on FWL ramp by Wowbagger. Dude..you're a freakin' joke..your motives are obvious:


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Subject: re: answer me this
Stock Code: FWL - FERROWEST LIMITED
Posted: 14/07/07 02:24 Hotcopper Radio: FWL on BoardRoom Radio
Posted By: Wowbagger Views: 345
Post #: 1947874 (In Reply to msg #1947439 from cpg) Sentiment: None
IP: 144.139.xxx.xxx Voluntary Disclosure: No Stock Held
An interesting thread, this, and a valid question by analyst99.

FWL isn't so much an iron ore play as a gamble on the viability of Kobe Steel's patented ITmk3 pig iron technology, which has yet to be proven as commercially viable, (see FWL's announcement dated 20 June 2007). If it does work, great, and let's hope Kobe don't ask too high a price for the use of their technology.

When FWL's latest resource estimate (113 Mt @ 25.3% total Fe) is compared to, say, Gindalbie's 1430 Mt @ 36.3% Fe to the south, they would appear to require some sort of magic wand to make the project fly.

(By the way, I've used Gindalbie as an example because the geology is similar and Karara is a similar distance to Geraldton port. I don't hold Gindalbie stock).

As for followme's reported quote from Brett Manning as to other companies being conservative, old-school and out of date, I think some may argue otherwise. Take a drive west out of Port Hedland and take a look at the rusting remains of BHP's attempt at adding value to iron ore before it was shipped, (their Boodarie hot briquet plant). Midrex rotary hearth furnace technology, anyone? How about Rio's $600 million HIsmelt technology?

To suggest that Australia's iron ore miners can't be bothered to look at new ways to improve profitability is simply not true.

Perhaps FWL are the first Australians to look at this ITmk3 route? They do have personnel with a lot of iron ore experience after all. All things considered, this would have to be a rather speculative punt.



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