They decided to focus on the more lucrative pig iron production phase and not bother with DSO, until the IO price improved. Pretty sound logic. I think it’s a relevant question to ask at what price level they’d put DSO back on the table though and they no doubt extended the mandate with Anglo till late this year to allow time for that decision to be made prudently. We know they’ve got portions of their resource that is very high grade and very suitable for DSO, so it would be fair to assume they’ll do exactly that when the price is right. The ore they are proposing to use for beneficiation prior to the rotary kiln process to produce the pig iron is the run of mine stuff.
MGU Price at posting:
9.3¢ Sentiment: Buy Disclosure: Held
