DD - I (honestly) don’t believe he’s downramping - I just think he has little knowledge of the market and is asking a serious question.
But here’s my answer - if Iron Ore drops back to US$55/t HIO most likely won’t get up! The Australian government had this as their ‘forecast’ but they have been completely wrong! Of course they would forecast low - because they’re working budgets around it - so anything above that amount is a ‘bonus’
As for the CR - I have a gut feeling that Management are working hard behind the scenes to absolutely limit any further dilution of shares!! The strong, firm language that Bryan has been using in almost all market announcements indicates to me their desire to ensure long term shareholders are rewarded for their belief in this project and by that - I mean putting in place offtakes that’s benefit shareholders!! This I believe is clearly evident in the recent $35m raise for the BFS where we have NOT been locked into a favourable offtake for any 3rd party!!
The BFS will continue with (hopefully) resource upgrades will be announced and company’s will be demanding access to our product given Governments around the world are now taking climate control, emissions and decarbonisation SERIOUSLY.
We all know this project has been massively de-risked the last 6-9 months - there is still risk in the CAPEX but the risk reward is massive - long term holders know this.
The day-to-day iron ore price does not bother me one bit. Iron Ore (and all commodities) run in cycles - people are getting scared about what’s being written in the news right now however that facts are (even with the latest massive drop) HIO would still be making OVER US$1b a year if in production right now!!
I’m more concerned about where the iron ore price will be in 2024 because if it peaks again in the year or 2 after that - my goodness!!
HIO Price at posting:
9.4¢ Sentiment: Buy Disclosure: Held
