- Beauty is that there is so little capex required, so its gravy for shareholders, and farmers alike.
My guess is 25/t margin, and no worries on 50MT.
We may have half that to start with, but conservatively should be able to use them hefty profits to encourage any one who spots some to sing out.
So you're a cane/banana farmer, and you're a bit sick of the hurricanes knocking the crap out of you every few years.
Farmer billy joe just got a 12month holiday while only part of his block was mined. And they just took the crest off his hill, so now his farms has a rehabilitated flattened profile.
So its not as if he has some monster pit created, far from it. The hills and plataus just get flattened a bit, in the order of 1-2 meters.
So if the neighbour wants a holiday, and stands to make as much as he would from working/ and risking the tropical norths fury, maybe after the first farm is demonstrated, others will be actively looking for red gold as well.
And then maybe the 50MT receives a warm welcome to expand.
QBL Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held