I've been away for a while on this one but back in today
Now I might be working on old information here, but IMO for FEX to do 10 bags they need a new project, not a small expansion of this one. It can still be iron ore, but the AISC needs to be much lower, or the mining rate needs to go from 1.2mt up to 5mt. From memory only, FEX is working with an AISC of around $80/t (someone please correct me).
When costs are running that high it doesn't leave much room for when iron prices decline, and that's a turn off.
Check out E25, who are doing a DSO manganese project in WA and only looking to turn a profit of around $30m per annum. That's ramping up to $120m per annum, which is still lower than FEX's, yet they're DOUBLE FEX's market cap because they're working on another project PFS which should have high margins.
Anyway, getting a little off topic. My point is that I don't think more high opex iron mining is the answer, even though it's extremely profitable right now.
FEX should be sitting on somewhere around $60-70m cash right now. Can someone confirm that?
I've been away for a while on this one but back in todayNow I...
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Last
27.0¢ |
Change
0.005(1.89%) |
Mkt cap ! $194.5M | |||
| Open | High | Low | Value | Volume |
| 27.0¢ | 27.8¢ | 26.5¢ | $481.2K | 1.764M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 9 | 1008877 | 26.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 27.0¢ | 239848 | 3 |
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| Last trade - 16.10pm 08/11/2024 (20 minute delay) ? |
| FEX (ASX) Chart |