There are Chinese steelmakers with furnaces designed for titanomagnetite ore deposits where vanadium is a byproduct.
If AXO can supply this feed at the equivalent of Hammersly Premium Fines then there is a deal to be done.
The steelmakers are buying at the low end of the haemitite cost curve and further reducing costs with the vanadium. AXO is also getting titanium as byproduct from the concentrate preparation.
AXO is a niche player in the iron ore market but with a first mover advantage. It has the deposit, money, a port and water. Ten million tonnes puts them around a Mt. Gibson size.
It is not a BHP or RIO competitor but will be making money well before many haematite hopefuls.
AXO Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
