Been busy all day, so only just got a chance to read the full...

Been busy all day, so only just got a chance to read the full report.

Some great things I took from the first read:

Positives
* Lowest Greenfield magnetite project in Australia - Gotta be happy with that.
* Only 5% Penryth coal used over mine life (352MT) + Exploration target another 2-300MT.
* Expressions of interest (multiple) from energy suppliers - you build mine mouth power station as big as you like, connect to all operations and guarantee free supply for life of mine. We'll supply coal at 10% above cost.
* Virtually complete use of existing infrastructure, with exception of rail spur (known but huge plus).
* 5mtpa 68% FE Mag (10% premium) ++++ 0.4mtpa 60% FE Hem (5% discount) - I thought Hem was only the early years, however reads like this will be a constant over life through tailing collection.
* Base case 30 years, open at depth so could be significantly more, 50 would be nice.

* 72/t FOB - It's good and better than any other magnetite producer in Australia, however I think this is what most surprised people and why we saw the initial drop this morning.

I like most people here were confused by the use of the phrase '$300 per annualised tonne' and incorrectly came to the conclusion that this referred to $60/t FOB. It is now obvious, that this purely relates to the CAPEX/tonnes pa or 1.5B/5M.

So some calcs:

I think the CAPEX will drop to 1B as I think the energy will be outsourced, so alot of money to get from somewhere.

If we assume $100 for 62%, we will be looking at revenue of $588M (550M Mag + 38M Hem).

Operating Costs - $388.8M (5.4M x $72)

Free Cash Flow - $199.2M

So excluding financing costs which would be signficant, any financier is looking at about 5 years to be debt free.

Pretty good for a 30+ year mine life and provides a ROI of $4.98B over life or $166Mpa.

Obviously these use a base case of $100/t 62% which I believe is fair, however the economics become significantly better is we look at the current price, albeit unrealistic.

Anyway, long enough post for me, good luck to all holders, can't wait to hear some of the press over the weekend and potential news of financing, energy partnerships and news of move to the DFS.

Best regards,
Bob

ROI over life of mine