I am so happy that Barnett granted the extension for the OPR / JHEP BFS to protect Australian interests.
The value (price tag) of MMX (OPR/JHEP) prior to the completion of the BFS (given the media attack - some say orchestrated by the Chinese to deliberately undermine MMX to the point where Barnett could not extend the BFS deadline and render MMX worthless) compared to the now VERY VIABLE outcome for both JHEP and OPR must be Sino Steel's worst dream. Hence the tantrum with parking Weld Range !
Well, it's not too bad really for Sino. It just means they have to pay a fair price for jewel of the Mid-West.
Remember at the time Weld Range (a substantially inferior and smaller deposit with limited mine life) was bought for $1.4 billion at a time when the long term strategic importance of Iron Ore was not as apparent as it is now.
I would have thought JH + JHEP would fetch at least that much (taken into the proximity to and synergy with Weld Range). $1.4 billion is roughly $3.25 per share.
Good thing is all the work is already done with repsct to the BFS. Hundreds of millions already spent by MMX and Mitsubishi. Now that's dded value.
Sino can get it all over and done with by writing out that cheque or Sino and Ansteel will be left in limbo in their LARGEST and most ambitious overseas investment anywhere in the world.
Conseravtively (looking at 50% of JHEP) $150/tonne at 17.5MTA. That's $2.7 Billion worth of IO in JUST 1 year. If they also own 50% of OPR, their CAPEX and long term tariff will also be significantly reduced through optimization and Chinese Labor !
MMX Price at posting:
69.0¢ Sentiment: Buy Disclosure: Held
