I'm normally a lurker but saw this comment on the MGT board, which raised an eyebrow
"One last thing I would like to mention regarding HIO. The 10 million TPA / slurry plan is very close to ROY's plan (2013 PFS) (the old company prior to MGT). The plan failed to get off the ground in 2013, trying to pump a slurry (10M TPA) from MGT's Razorback site all the way to port with a funding cost of around $2 billion AUD...S.A. is bloody DRY, the driest state of the driest continent. I have major doubts that HIO will find the required water... I hope I'm wrong but this worries me more than the $2,000,000,000 finance. (Yes I know HIO is over the border in NSW)"
In looking up ROY there seemed to be a number of similarities but couldn't find a lot of information, do any long term holders have any thoughts on this?
They also follow it up with this;
"Consider how much water is required, 10m tpa or ore at a bulk density of 4.89 tonnes per metre3. I estimate 3m3 of water per m3 of ore, so 2,049,180 m3 of ore = 6,150,540 m3 of water. Imagine the cost associated with pumping 6,150,540,000 litres of water 80 kms through a pipe?The cost to produce each tonne of ore just went through the roof!"
Surely these cost were already covered in the PFS? Do people with more experience in iron ore think the water issue will be a significant hurdle? it does seem to be the reason ROY failed to get funding in 2013.
I know you cant directly compare thing but wondering how people felt about this?
I will say they followed all this up with;
"I guess you know what "Saline Water" and oxygen does to iron?? That saline water will need treating prior to use...More costs...F#ck it! I'm selling my HIO holding... LMAO.."
Missing the fact the HIO's PFS covers the required reverse osmosis plant and 80km water pumping (I couldn't find a explicit cost breakdown but it was mentioned in the PFS announcement). I strongly suspect they never held HIO but I'll take people at their word.
