IRON OREComment: The Baltic Index has weakened recently. Spot...

IRON ORE
Comment: The Baltic Index has weakened recently. Spot iron ore prices have been improving strongly. Iron ore prices may be supported by Chinese
restocking. Spot prices Iron ore pellets: US$178.50. Iron Ore fi nes: US$171.50.
All information and advice is confi dential and for the private information of the person to whom it is provided and is provided without any responsibility or liability on any account whatsoever
on the part of this fi rm or any member or employee thereof.
WEEKLY MARKET WRAP 14
Stock: Western Desert Resources Ltd (WDR) Market Cap: Small Cap
Recommendation: Buy Risk: High
The Roper Bar project has two hematite ores - direct shipping (DSO) and benefi ciation (BFO). The ore body is shallow giving a low potential strip
ratio of 3 to 1 in high grade areas and less than 1 to 1 in low grade areas. Meaning mining costs will be low. The BFO is easily amenable to upgrade to
60% Fe with low impurities such as P, Al and Si via density separation techniques. The project is located in the Northern Territory, 30 km from the
Gulf of Carpenteria which allows for relatively easy movement of product to export markets. From the mine ore will be transported to coast via a
conveyor belt and subsequently transfer shipped to panamax vessels in anchored in deeper water around 20km from coast in the Gulf. Estimated
pre-production capital expenditure is $300m which is very attractive when benchmarked against peer iron ore developers.