These nos are the back of a envelope
We know we have at the Southern block (Yarrabubba ) as previously reported some 37mi ton resource which can be converted to a reserve of say 80% something like 29M and this could yield some 23-25M of product which has 65% Fe….this results in a possible mine life of over 8 years of 1.5m ton to Sinosteel.
Thus at current prices of say $123/t plus extra $17/ton (Platts premium for high grade) results in a revenue of say $210m/annum…..Say costs of 50%.
Thus a positive result of over $100m/year…….means payback in just 12 months.
I have not allowed for any revenue from vanadium that could go as high as $30/t
It’s a shame the ASX does not let directors expand on these figures
Managing Director Ian Prenticecommented: “The emergence of thisopportunity to produce a high grade, high purity Fe-V magnetic concentrate, theYarrabubba High Grade Iron Product, is a major breakthrough for the Company,delivering a new project that is complimentary to, and expected to reducefunding and implementation risk of, the **anintha Vanadium Project.. This premium product is expected to be well received by the steel industry,underlined by the support of a global industry leader in Sinosteel Australia.”
