hi troubleshooter,thanks for the run down. i should say however...

hi troubleshooter,

thanks for the run down. i should say however that I very familar with the different iron ore forms - in fact i've even been to the tasmanian mine you mentioned (some time ago now however). 9% and 12% is exxxxxtremely low. even by magnetite standards. china barely touches even those levels. not here here to down ramp though i was expressing my surprise is all. Savage river in tasmania is more like 35% and is a mid to higher range cost operating mine (it produces pellets though not concentrate predominantly)

you're correct that it can well and truly can be upgraded. the lower the fe - the higher the operating costs though.
In china Fe grades that low typically mean that operating costs are around the US$60-70 range (as a minimum).
perhaps they'd achieve some productivity gains in peru per worker but of course their wages would be higher.
I don't know where ADY's operations are in relation to the coast but presumably as well theres a chance that their transport costs to the port might be low but aussie and brazilian standards.

If they have another resource with better grades then that certainly is reason for good prospects because grades that low are not indicative of a sustainable and profitable iron ore mine - at least anywhere outside of china (perhaps ADY have the only one).