this could end badly, page-5

IMO Breakeven cost is much higher for GBG due to it being primarily a low fe% magnetite resource which is more expensive to extract and process and not as sort after as the old Hematite which can be DSO…..

As an example FMS has a target resource of up to 3 billion plus tonnes of magnetite sitting idol at its Canegrass tenement since 2009 which I think is more resource then GBG (correct me if I am wrong) and where little to no work has been done to develop this magnetite resource ..

Yet on the other hand at its pilgarra tenement where they have recently increased the exploration target 1.2billion Tonnes of high grade hematite they are putting all their energy into…..their Hematite resource is near surface, high grade and of course represents a low operating cost….

If 90-95 is the estimated breakeven point for GBG this would place them in a very risky place if IO prices drop below $100 and make them one of the most expensive IO producers in Australia...not a great return on your investment you would have to say....

I would think that a low IO price may even put at risk any thought of a recovery in the SP or dead cat bounce and not to mention a potential for a "complete mine start-up failure" as investors look elsewhere with long term cash returns being low as IO price remains low…..