Strike should be looked at as a company with 4 parts as each has...

Strike should be looked at as a company with 4 parts as each has its own value proposition and merit:

Peru DSO - Small but high quality product of lump 65% fe, immediate quick cash cow with premium lump and high fe content pricing of +$20-$30 pt above spot offsetting high costs.

Paulsons East- Medium project with low CAPEX and quick pay back and solid fundamentals with iron ore above $100.

43% holding in ASX:LEL- Strong Lithium and graphite exposure. LEL current market cap $50mill.

Apurimac magnetite project- World-class project, 100% owned comparable to the majors with updated pfs due soon.

I do agree with you that production costs need to be competitive long term. I believe where SRK differs is their projects are de-risked as the current Peru DSO is attracting premium pricing which creates a buffer and is providing the capex for Paulsons East so no debt is needed. Also that both projects are designed short term to take advantage of current market conditions so not to be caught up in over investing in infrastructure as some companies have done in the past.

In my eyes their main project is the Apurimac magnetite project as it is world class, has scale and will have an operating cost similar or better than the big boys you mentioned.

Its a bit out of date but you should look over the 2008 pfs on the Apurimac project which indicated a $16 p/t operating cost for a 68% fe product. Once updated and accounting for increases in operating costs, they should slot somewhere in that safety zone of the low cost producers of around $22 US/t but the difference is our product will attract a premium price of approx 30-$50 US/t to what BHP/RIO receive.

Ive been buying up on the anticipation of the updated PFS as I believe it will demonstrate Strike as having the lowest cost undeveloped high-grade iron ore mine in the world imo but time will tell

GL