In addition to the Grants Iron Ore Basin, potentially the
Maldorky,
Grants and
Lilydale magnetite deposits could also provide SIMEC's Whyalla Steelworks with high-grade and low impurity Fe concentrate for the next
50 years (at 6 Million tonnes per year) based on the following scenario:
|
Column 1 |
Column 2 |
Column 3 |
| 1 |
|
|
|
| 2 |
|
|
|
| 3 |
|
|
|
| 4 |
A$/US$ FX rate: |
0.7079 |
On 9 October 2018 |
| 5 |
|
|
|
| 6 |
66% Fe Concentrate (MBIOI-CO) US$: |
100.64 |
https://www.mbironoreindex.com |
| 7 |
62% Fe Fines - Low Alumina (MBIOI-62-LA) US$: |
74.5 |
On 4 October 2018 |
| 8 |
|
|
|
| 9 |
|
|
|
| 10 |
Maldorky deposit (Indicated) Fe JORC Resource: |
147,000,000 |
tonnes |
| 11 |
Maldorky deposit Yield: |
40% |
Maldorky deposit 'estimated yield' (page 28 of 2017 Annual Report) |
| 12 |
|
|
|
| 13 |
Grants deposit (Inferred) Fe JORC Resource: |
304,000,000 |
tonnes |
| 14 |
Grants deposit Yield: |
33% |
Grants deposit 'estimated yield' (page 28 of 2017 Annual Report) |
| 15 |
|
|
|
| 16 |
Lilydale deposit (Estimated) Fe Resource: |
450,000,000 |
tonnes. In fact, this could be > 500 Mt |
| 17 |
Lilydale deposit Yield: |
32% |
Yield assumed to be the slightly lower than Grants estimated yielda above. At 106 micron grind size, could be as high as 35% |
| 18 |
|
|
|
| 19 |
|
|
|
| 20 |
Maldorky deposit Fe Concentrate (high-grade): |
58,800,000 |
tonnes |
| 21 |
Grants deposit Fe Concentrate (high-grade): |
100,320,000 |
tonnes |
| 22 |
Lilydale deposit Fe Concentrate (very high-grade): |
144,000,000 |
tonnes |
| 23 |
|
303,120,000 |
tonnes |
| 24 |
|
|
|
| 25 |
|
A$ |
|
| 26 |
Maldorky deposit: A$ In Situ Value (In Ground Value): |
$8,359,417,997 |
using 66% Fe Concentrate (MBIOI-CO) price |
| 27 |
Grants deposit: A$ In Situ Value (In Ground Value): |
$10,557,762,396 |
using 62% Fe Fines - Low Alumina (MBIOI-62-LA) price |
| 28 |
Lilydale deposit: A$ In Situ Value (In Ground Value): |
$20,472,044,074 |
using 66% Fe Concentrate (MBIOI-CO) price |
| 29 |
|
$39,389,224,467 |
|
| 30 |
|
|
|
| 31 |
A$ Fair Value based on ISV% (see Note A below): |
A$ |
|
| 32 |
2% |
$787,784,489 |
|
| 33 |
3% |
$1,181,676,734 |
|
| 34 |
4% |
$1,575,568,979 |
|
| 35 |
5% |
$1,969,461,223 |
|
| 36 |
|
|
|
| 37 |
|
A$ |
|
| 38 |
2% |
$3.33 |
|
| 39 |
3% |
$4.99 |
|
| 40 |
4% |
$6.65 |
|
| 41 |
5% |
$8.31 |
|
Note A: The ISV value factors ranging from 2% to 5% are rules of thumb used in the industry to value mineral resources under the VALMIN code.
66% Fe Concentrate (MBIOI-CO) Specifications
Price: US$ per dry metric tonne, CFR China
Material Origin: All Origins
Fe Content: Base 66%, Range 63% to 70%
Silica: Base 4.5%, Maximum: 9.0%
Alumina: Base 0.5%, Maximum: 2.0%
Phosphorus: Base: 0.02%, Maximum: 0.06%
Sulphur: Base 0.03%, Maximum 0.10%
Titanium: Base 0.05%, Maximum 0.30%
Delivery Port: Base Qingdao, normalised for any Chinese mainland sea port
62% Fe Fines - Low Alumina (MBIOI-62-LA) Specifications
Price: US$ per dry metric tonne, CFR China
Material Origin: All Origins
Fe Content: Base 62.0%, Range 61.0% to 63.5%
Silica: Base 5.0%, Maximum 7.0%
Alumina: Base 1.5%, Maximum 1.9%
Phosphorus: Base 0.08%, Maximum 0.09%
Delivery Port: Base Qingdao, normalised for any Chinese mainland sea port
Cheers
These are only my random thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts. No tumbleweeds were harmed in the writing of this post.
HAV fanboy:
still drinking the grape, orange strawberry, pink lemonade, strawberry kiwi, blue raspberry lemonade, berry cherry, cherry, tropical punch, watermelon, lemonade Kool-Aid 
(20min delay)