Indo Mines will be one of the lowest cost pig iron producer in the world in cause of 273 million tonnes of Fe are near surface (0-6 metres). The scoping study shows very low operating cost of US$149 per tonne/pig iron. Assuming sales at US$300 to US$350 per tonne and intended production of 1 million tonnes per annum, indo mines will have at least US$151 million of positive cashflow per annum but the current marketcap is only ~75 million A$.
What a cashcow - for us, too.
IDO Price at posting:
34.0¢ Sentiment: LT Buy Disclosure: Held