The capacity of the magnetite plant for stage 1 was 8m tonnes pa. This was with a grade of 68%, but I am unsure how close they are to that percentage. The quarterly report of 29 Oct last year noted that the grade was 65.8%. No announcement to say whether the grade has increased.
Exports to end of Dec 2015 were 4,760,00 but this includes DSO (from shipping records leaving Geraldton). According to the Sept Qtr report the magnetite concentrate increased 8.4% above the June Qtr which was 1.4m tonnes. Therefore 1.843m tonnes of magnetite concentrate in Sept Qtr.
If not change in Dec Qtr of magnetite concentrate, then half year production is approx. 3.69m tonnes.
If same improvement of 8.4% for Dec Qtr then half year magnetite concentrate maybe in the order of 3.84m tonnes, which is approx. 4% under design capacity.
We will have to wait and see what the Dec Qtr figures are.
Looks like still exporting between 900k to 1.1m of DSO which would hardly cover costs.
So I guess still in the loss making stage.
And no announcements since 27 Nov 2015. All quiet on the western front Is that good or bad news?
GBG Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
