titanic, page-7

Sbitt74

I strongly agree with you. I've been saying since 2010 mining boom is coming down, especially magnetite iron. The problems are:
1) Massive capex... all in several billions; CITIC exceptional $8B for 25mtpa
2) Massive opex... high labour cost, infrasture sharing etc.
3) Carbon tax - energy intensive
4) CP's special royalty - read my old posts. CP needs to remove this royalty fees if he cares about other holders. ROY with 2.1Bt and infrustratures, NO royalty, massive cash, still struggle with JV partner. Don't you think JV partner will pick ROY's royalty free project first before ARH?

There are plenty of high quality haematite are struggling to get off the ground. All Magnetite companies will have to wait many years (could be more than 20yrs) for all quality haematite projects got taken up, then magnetite all have some chance.

Most investors say mc = sp X number of shares on issue, so some magnetite projects sound "cheap" based on sp. BUT do you know how many billions of share need to issue to pay director fees to stay alive?

Is ARH 1c/share cheap? Depends eg they will need to issue 10 billion shares to stay alive to wait for JV partner (could be 20yrs away), then 1c/share is extremely expensive.

Like PDY @ 0.5c/share (yes, less than 1c) will print shares like toilet paper. But you CANNOT print money, companies can print shares. If I can print fake money, then I'll buy ARH shares with fake money.