Ansteels contract is only for 67 or 68%+ magnetite. They do not have to buy anything that is below that. This is per the contract with KML. I remember reading KML was selling its inferior grade magnetite on spot.
I also remember an AFR article stating that Ansteel will probably only take 80 percent or so of high magnetite anyway. Rest is sold elsewhere... Might have been a little lower actually. Funny that the AFR mentioned this and not GBG. Article was in April, anyone with online access can check.
Iron ore market looks bearish. AGO hit new lows, as with FMG. KML os probably more geared than FMG, especially with all the working capital loans. I'm on the sidelines now. Won't touch this stock until nameplate and cash flow positive reached. I want to see confirmation on the operating costs. Wouldn't be surprised to see this blow out like everything else.
Shareholders in GBG did worse than MMX in the end. Who would have thought. Disaster of a investment for any long termer.
Ansteels contract is only for 67 or 68%+ magnetite. They do not...
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