Agree TB may be a little optimistic with 50 by spetember; the data so far tells me 5 transhippers can do 40 m t pa with good weather, and scaling back for bad weather = 36 m t pa. I think there's probably 10% improvement as they get more experienced = 40 m t pa. Baowu would have be delighted with the JV. They are now getting 30 m t of iron where they are short per year at 2% discount to spot, and all they had to pay was a $400 m US carry loan where they are earning 7% interest, and getting Aud payments back of $206 m per year over the next 3 or so years.! There also earning $20 per tonne from Mineco too, but only at a 20% interest whilst carry loan is repaid. How good is that for Baowu!
Compare that with Simanduo where they've spent $30 bn with Rio since 2019 and so far still have nothing to show! If i was CE i'd be on the phone every day to Baowu and tell them to speed up delivery of Transhippers 6 and 7, which i think is the key to getting 50 m t pa, and very much in both Baowu and Min Res's joint interest.
Change the queue order and give Min Res the next transhipper built in China is my view!
MIN Price at posting:
$20.48 Sentiment: Buy Disclosure: Held
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