I like this post. Some lateral thinking. Let's no-one forget...

I like this post. Some lateral thinking.

Let's no-one forget that;
1. The grade of ore that will be produced by this facility is rare.
2. This type of ore will always be in demand and warrant a substantial premium - due to the pollution crack-down in China.
3. There is no need to transport to port.

I like the stock. I think the share price has been artificially suppressed by the parent company - and this may have to finish if someone sees the project as a take-over target at current levels - or even 50% above current levels - when nameplate production is achieved.

The argument seems to be that demand is waning as supply is increasing. If that was the case and I was a Chinese buyer - I would be buying the better ore for a relatively small premium and reaping the benefits of low energy cost incentives at home.

Bottom line - whatever they are able to produce will ALWAYS be sold - at a healthy PREMIUM.

Just a couple of thoughts ...