Good insight kgee, but here is an exceprt from GRR's company overview. They export magnetite, in the form of those pellets, currently at 2.3mtpa. The mine is expected to last until 2028 (18 years from now). They do have a project three times larger being set up elsewhere, but their market cap is currently $760M with no current production from said new project.
This is the overview of their project for anyone that is interested. I'm not cross promoting the company, merely highlighting how much this company is valued at when you put it up against CAP and what they are trying to do.
Grange Resources Limited owns and operates Australias largest integrated iron ore mining and pellet production business located in the north west region of Tasmania. The Savage River magnetite iron ore mine, 100km southwest of the city of Burnie, is a long life mining asset set to continue operation to 2023 with current reserves estimated to extend the mine life to 2028. At Port Latta, 70kms northwest of Burnie, is Grange Resources own pellet plant and port facility producing approximately 2.3 million tonnes of premium quality iron ore pellets annually with plans to increase annual production to 2.7 million tonnes by 2010. Long term supply contracts see these pellets shipped to major steel producers in Australia and Asia.
Disclaimer: I hold GRR.
CAP Price at posting:
50.5¢ Sentiment: LT Buy Disclosure: Held
