SP re rate due to Hype vs Endgame, that’s the choice I needed to...

SP re rate due to Hype vs Endgame, that’s the choice I needed to make to justify how I wanted to invest. Not a fan of BS, I decided to research for hard truths.

Everyone agrees that Magnetite / high grade Iron ore will be in high demand and South Australia ( and NSW )has heaps. Being a local, over the last two years I’ve sought to evaluate the prospects of getting a mine(s) to production.

I’ve looked at MGT, HIO, HAV and only hold IRD.

AS I said I’m sick of reading BS. For example, in the HIO research article above we read :

“Location and infrastructure: The Project is located close to infrastructure and skilled personnel and services - this includes access to grid power, and water from aquifers that will be sufficient to support an expanded 20 Mtpa operation.”

BS. Water from aquifers will not support a 400km slurry pipeline that is planned for the 20 Mtpa option, and may not even support the 60km slurry pipeline for the 10 Mtpa option.

So then we read :

”One of the potential transport limitations is rail capacity - although there is spare capacity to handle 10 Mtpa, 20 Mtpa cannot be managed as it stands, however this could potentially be overcome by the addition of passing loops amongst others.

Different options (including hybrid and staged) are being considered, with an underground slurry pipeline from the concentrator site to the selected port being one of these

Potential port options include:

– Port Pirie,

– Port Playford (Port Augusta); and,

– A new port at Myponie Point, north of the current facility at Wallaroo - this has the benefit that a jetty with a length of ~2 km would be able to directly service cape size vessels, without the need for transhipment.

The first two options will require transhipping, and the development of the necessary concentrate handling and loading facilities at the current facilities.”

More confusing BS

We all know how critical port infrastructure is and how difficult and limiting not having a deep sea port would be to production at scale. A new port at Myponie Point will require multiple users etc. ( add 5-10 years to timelines)

Hype, but yes this is the stock market we are talking about. You can make short term gains, minus CGT, so go get some HIO. Me personally, knowing that IRD owns the land at Cape Hardy, have completed their BFS etc. etc, I’m not going anywhere as that Endgame may be closer than we think - definitely closer than the others.