rusty,it is probably worthwhile exploring some of that gap...

rusty,

it is probably worthwhile exploring some of that gap between Eruu and Selenge

Processed output
To rate both of them equivalently, the actual processed tonnages come out at something like 160Mt @65% for Eruu and 66Mt @65% for Selenge. So eruu is 2.5 times bigger than Selenge, or Selenge is worth only $800m in relative terms to Eruu on a regraded ore quantity alone.

Cost of production.
Given the higher grades at Eruu, we can perhaps assume that there are also lower costs in crushing and seperating the material for grading and sale. Lots of other factors like impurities, strip costs etc that might also make Eruu cheaper or more expensive to operate.

Iron Ore Price
The most significant factor in Eruu was probably the price at the time and future forecasts. Eruu was bought in a different era when prices were sky high.

now the market is looking at the cyclical factors of oversupply killing price. Based on the initial estimates from Haranga, I think the Operational costs were tagged at being around the $$65 per ton mark. PLenty of room for a decent profit in this business if someone wanted to take this into production. Maybe no $2 per share.


Yes Cowboy, here is one punter happy to double down. Unloved, unappreciated , undervalued is my speciality after having been married for good nows how many years .hahaha

Cheers,

SF


Eruu Gol valued @ $2b with 300mt
HAR valued @ $26m with 254mt