bright future as iron ore producer.??, page-4

big magnetite project

i was once hopeful

GBG is the only magnetite project that has gone anywhere & the Chinese funded most of it & the CAPEX blew out big time, to $3B+

imo, ROY have the best magnetite project in Oz

close to railway; close to power; has water

important, has 75 micron grind size from memory, which means lower capex & opex than GBG

ROY have mentioned a $200/t capital intensity, meaning $1.6B capex for 8mtpa or $2B capex for 10mtpa

could be a little more

imo, the important thing is to watch the GBG opex, so see if it blows out from their $76/t higher estimate

imo, for ROY to build a mine really requires some big foreign CAPEX, say a Chinese partner funding the whole project for a 70% to 80% share

but, as i mentioned, imo, ROY have the best magnetite project in Oz