the company stuck with 10mtpa using existing infrastructure for years while other projects changed. $35m was raised to progress this case.
it was, as pyroxene says, complete folly to try 20mtpa.
HIO also changed the plant design without explanation, and have now admittted to needing to redesign it. should be an easy win.
HIO also as pyroxene says diluted the ore body to feed 20mtpa.
It didn’t work, and doesn’t need to.
the previous philosophy of maximising tonnage through existing infrastructure to get the economic sweet spot should still be viable, especially with a higher base iron ore price to cover cost increases.
HIO should be telling investors of the $35m why that is not preferred anymore? and until they do the strategic review should be seen as nothing more than PR to support existing management.
redesign the plant to maximise the ores unique advantages. Use rail and Pirie or Whyalla, i can’t help but think hanging on to the scaleable pipeline and new port just puts unnecessary costs on a start up and the strategic review with this result could be seen as covering up for management…after all they couldn’t go back to the case they actually raised the money for?
such incredible waste on a great project.
HIO Price at posting:
7.5¢ Sentiment: None Disclosure: Held
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