Yeah redrockgeo was a bit out on his post the other day.
I have calculated there cost and freight rate (CFR) to be $A116/t, trucking and their current freight costs are very expensive.
The current iron ore price is roughly $US136 CFR, so they would only be making roughly approx $US15 a tonne.
If they go to a lump product, it is no cheaper to produce, they recieve approx 7% premium to what ever they sell.
Whilst they are making some money on the Iron Ore at the moment, the real business that will make or break ATI is the amount of Vanadium they can produce per month. As seen in the presentations they need to get up to 300 to 350 tpm to breakeven from a operations perspective and 400 - 450 on a after finace perspective... They are currently only at 150 tpm, therefore they need to double this production rate to get into the breakeven operational level. Only when they reach this will the stock price rise in my opinion. Still early days, first half of next year will make or break ATI.
ATI Price at posting:
20.0¢ Sentiment: Hold Disclosure: Held
