MIN's Quarterly Activities Rep - IV Only

Min Res released their Dec Qu Report this evening - below is their report on IV.

Interesting that there was no mention of BOSS.....

IRON VALLEY PROJECT

Production and export of fines and lump products are progressing as planned with shipping volumes weighted towards the second half of the year.

Substantial discounts to the Platts 62% index prices for fines product, in excess of 40%, are continuing. This pricing situation along with stockpiles of iron ore products in excess of 150 mt held in China, make the iron ore fines business challenging. Reports from market commentators suggest that the environment of low prices for low grade fines product is systemic as steel makers prefer the low emission effects and efficiency of high grade lump. This current situation is not expected to reverse any time soon.

Approximately 500 Kt of fines product was stockpiled in the quarter to preserve value in the resource from the prevailing high discounts. This stockpile will be shipped in coming months.

On the other hand, prices for lump product is strong, supported by increases in the Platts 62% index prices in recent months. The strength of lump prices has made the Iron Valley operations cash positive overall.

The sales and marketing team continues to look for innovative solutions to offset the substantial discounts to low quality products. This has included successfully blending long-term stockpiles into the ROM blends to create a higher quality product.

An infill drilling program of 8,400 metres of RC drilling commenced in September for the Iron Valley North West and C2/C4 resource to facilitate mining starting in November at C2/C4.

Delivery of an additional EX2600 excavator and two HD1500 dump trucks were received during November, increasing the mining fleet and increasing productivity.