The AQA bid could be a negative for us, particularly with the Aurizon participation which means they'll want to open up the rail line to third party access. Could this mean some other juniors who would want to use Cape Preston East as a shipping facility having an alternative route to sea?
However, given Anketel is expected to cost over $7bn and the problems AQA has had with its joint venture partners, you would think the Cape Preston solution will get to market a lot sooner and with a capital cost (say around $600m) that would be a lot easier to fund without having to rely on a massive debt package like Anketel. Particularly given the banks will be nervous around the IO price.
So despite the AQA developments which are very interesting you would think the IOH Cape Preston solution would still be a very desirable project.
Its been a bit quiet on this front in terms of discussions with partners in the Port and mine. Hopefully we get some news soon given IOH have proven adept at dealmaking.
And really a valuation of 90c doesnt even fully value Iron Valley production, Bucklands in my mind is still cream.
IOH Price at posting:
91.0¢ Sentiment: Buy Disclosure: Held
