Looking over Gindalbie's website there is a nice page entry on Magnetite vs Hematite, showing the value of Magnetite. In FWL's case, the opportunity to sell magnetite seemingly increases with every rise in Hematite.
Recently, holders (including myself) have looked at the future for FWL as long-term mpi and short-term dso (from their WHP).
FWL's page on their Yalgoo Iron Project talks about another opportunity :
http://www.ferrowest.com.au/yalgoo.html
"The magnetite ore would be crushed and fed into a beneficiation plant, located at the mine site to produce around 770,000 tonnes per annum of magnetite (iron ore) concentrate grading 67% Fe."
So if the BFS for the mpi is too high, this alternate approach of shipping the 67% Fe would be fabulously value adding for the business. I think this is a good milestone to aim for.
In short time there will be a significant upgrade to their magnetite resource. A conversion cost to 67% Fe may be speculated.
LCG Price at posting:
14.9¢ Sentiment: LT Buy Disclosure: Held
