Righto I still cannot get * articles to link regardless...

Righto I still cannot get * articles to link regardless of how I attach them!

https://**promotion blocked**/resources/bulk-buys-grange-resources-punching-above-its-weight-with-absurd-iron-ore-price-premium-as-vale-and-bhp-report/

It’s an article from July when I/O was pumping but it shows the clear definition between grade prices. Whilst this is focused on GRR’s 65% it highlights the margins between 58-62 & 65%. Considering we are looking at 67.5%+ it gives a clear indication of the cream we can skim off the top.

They were pulling a $130USD/T premium over 62%......... HELLO. Using this as a guide & even if your err on the side of caution we could POTENTIALLY realise ANOTHER $100USD/T premium above these guys. While this is obviously at the extreme end of the range and not common it does show the lengths Mills will go to secure materials to keep them going and reducing their emissions. Even based on today’s spot price 65% pellets are attracting a $70USD/T premium @ $178.20USD/T above 62% fines @ $108USD/T, with 58% @ $71.50USD/T.

Yes they produce pellets, this is already a path P&M have already stated they are looking at if not now but in the future.

The article also notes GRR are looking at a 20% reduction in costs down to $90/T............... that’s 67% higher than our current estimated costs for 3Mtpa. This is before they trim the fat or increase production, saving through economies of scale and if we can sell locally out cost will reduce by a min of $15/t+ as we will not pay port, shipping or export fees! We would also then reduce any risks from port issues, weather delays especially in Bass Straight or cyclones on the west coast.

They are also in the process of expanding the mine to extend its life by 10yrs & who in their right mind would bother if they didn’t think they could keep raking ridiculous amounts of profit.

The world is pushing green & governments are doing their upmost to ensure they don’t look like the petulant child or get left behind. SA has been a leader in this country for a long long time & I can’t see them relinquishing that anytime soon!

NFA DYOR IMO GLTASH