ANS would do well to focus on their 11.5mt DSO resource whilst...

ANS would do well to focus on their 11.5mt DSO resource whilst the fe price is high enough to cover the transport costs. Both GWR (Wiluna) and Fenix (Cue) are set to make a good profit at current fe prices.

ANS has about the same distance as GWR to transport their ore as Telecom Hill is probably about 180km by road (75km on GNHwy then turn onto the Meekatharra/Asburton Downs Rd which is currently being upgraded to bitumen and then onto a gravel rd) past Meekatharra which is 536km from Geraldton. GWR has 711km in total including a mix of gravel/bitumen on the Goldfields Hwy between Meeka and Wiluna, then 18 km of gravel road to the deposit.

ANS would need to crush and sort prior to loading to lift the grade above the insitu 58% average but than can be done. There is also another 10mt DSO close by owned by Sinosteel that they bought off MZM, but they couldn't extend the resource by much so have closed up shop out there. ANS seemed to have a good relationship with Sinosteel back in the day when they were PDY. They purchased the Oakajee IP frim Yilgarn for $2m after their unsuccessful bid to win the right to build the port, which went to Mitsubishi/Murchison Metals jv. Sinosteel was a part of the competing Yilgarn bid that was overlooked by the Carpenter Govt, even though most analysts at the time considered it to be the superior bid. Carpenter said he didn't want China to own the port, rail and mines, so he offered the rights to the Japanese backed bid instead, which never lead to any infrastructure being established.

Geraldton Port Authority seems to have relented on their position of not allowing iron ore through their port due to its location in the heart of the town's waterfront and the possibility of ore dust eventually coating the area brown over time. They allow Ansteel to ship around 8mt pa from Karara, plus are in negotiations with Fenix and GWR. I'm not sure if Mt Gibson is carting through there also at present, though MIN was taking ore from one of their mines (may have been Carinya) there.

I think current govt. is keen to see Oakajee built and are pushing the area as a hydrogen hub. Whether it leads anywhere is anybody's guess, though the area is in desperate need for a new port to open up the area.

AVL (formerly a subsidiary of GPN/PDY/ANS before being listed in 2007) will need port access for their vanadium/titanium/fe project if it gets off the ground, as will TMT. I'm not sure the Geraldton Port can cater for everyone including the cruise ship industry in future. Karara has plans to increase their production from 8mt pa to 16mt pa, so a new port becomes essential in the area, which is why Kingstream tried as far back as 1990 to get if off the ground.

Eventually it may take both State and Federal Govt support to make it happen as China is probably not likely to get involved and are probably unwelcome anyway as things stand.

If ANS decided to abandon their overseas plans then they could feasibly ask the ASX to lift the current suspension immediately as they have enough cash to recommence work at Telecom Hill.

They will be forced to restructure and undertake a large share consolidation if they are delisted as part of any future relisting. This is ultimately costly and time consuming, so it will be interesting to see how this all pans out and if small shareholders get shafted. SDL is an example of how the retail shareholders eventually end up with very little of the company through dilution. As is LCY, another good case study of under deliverance that erodes value of long term holders.

Good luck to those still holding.