Iron Ore Price has increased to US$124, after a few months of...

Iron Ore Price has increased to US$124, after a few months of hovering around $120 a tonne. With a dropping Aussie dollar to 90c this represents $137 a tonne, as Chinese steel mills start to replenish inventory.

ANZ Bank, has just released a new report yesterday, expecting Iron Trading to pickup in the next few months, as China's construction and manufacturing activities recommence and gain momentum.


1 million tonnes of Ore today’s iron ore pricing of ~$137 /t, approximately $57m in PROFIT BEFORE TAX from the project is expected in 2014, if we assume TRF receive $124/t for its product and operating costs of $80/t.

With TRF’s ~20%% stake, this would translate to ~$11.4 m to TRF. Not a bad arm tentacle of cash flow.

The Wilcherry deposits contain coarse crystalline magnetite and low silica contents which enable low cost and efficient production of concentrates containing over 70% Fe with very low impurity levels. Chinese demand for high quality Iron Ore remains very strong.

Recap for newcomers> What further news we can expect in the next few months?

Further High grade Manganese/ Hercules Iron Ore
Proven Indicated JORC Resource
PreFeasibilty studies
Financing.
Mine start-up is scheduled for late 2014

The fundamentals remain very strong with TRF's quality diverse portfolio of quality mining assets. A potential great year is coming with TRF's 15% Orinoco Gold (OGX) Cascavel, Brazil stake & Wilcherry Hill heading closer towards production.

I certainly hope to be buying more in the next few weeks at these opportunistic levels.

Arlberg1