Edison Report, page-5

I don’t know why people want to know difference or advantage of FMS verses RTA be an Aussie and put 20c on each horse of a two horse race??????.
Re cap ex for FMS is constantly revised and mgt are reducing it.. Curent $ 726m(see Edison report)
This gives FMS more flexibility in the initial years
RTA and FMS don’t sink together. FMS did not develop rail/port because with the cap ex of the mine as well it could sink. FMS is still holey owned and has no debt and has the other resources. In worse case scenario if FMS were to go into “care and maintainance” It will have to cope with a smaller problem.
Moneys spent by FMS in recent drilling only added to the value of the mine. It’s a false economy to say Todd has deep pockets and can afford a wright off of $100 m and RTA would be left-up the creek. (fire sale)
What are the cap ex to develop the different resources of RTA
How much I/o does RTA have and what grade % i/o? For Super time. please include the silica content.
RTA has carried out a PFS (pre feasibility study) FMS finished there’s several years ago. Will RTA have to do a FFS? (final feasibility study) What’s the $$$$?
I found the Edison report confusing since it leaves out the cap ex for the mine for RTA.
The chart shows DPS zero but they have a debt and Keep issuing convertible notes to Todd. Guys that’s like a CR.
The following is the extract from Edison referring to FMS and that sounds fine to me. It’s debt free and holey owned and more advanced than RTA in the development. FMS having a smaller exposure to debt is a big advantage in this climate. ..
Flinders: New capex estimate; resource upgrade
Reduced capex estimate for PIOP
On 18 September 2014, Flinders released an updated capital cost estimate for the PIOP. The project’s direct capex, including all infrastructure and construction costs but excluding contingency and owners’ costs, is estimated at A$726m. Based on a production rate of 25Mtpa, this implies a very low capital intensity of A$29/t. We understand that the company is considering reducing the pre-production capex through off-balance sheet funding such as operating or financing/capital leases. While the new capex estimate does not directly affect the BBI, it improves the viability of the PIOP against the current weak iron ore market backdrop and therefore reduces the project’s execution risks. The company plans to further refine the capital cost estimate during the BFS, which is slated for completion in mid-2015.
Despite the sharp drop in the iron ore price, we continue to view PIOP as an attractive development proposition that has strong economics and offers a hefty return on capital. Based on the spot iron ore price of US$82/t (CFR China) and a 25Mtpa production rate, we estimate that PIOP could generate some A$15/t in annual EBITDA. Other assumptions underpinning this estimate include a direct cash operating cost of A$30/t (including royalty) and a transportation related cost of A$27/t (based on the Alliance agreement), giving a total cash cost of c A$57/t (excluding any potential operating or capital leases); and a realised price of A$72/tonne on a FOB basis. Overall, the project’s solid cash flow generation potential coupled with the reduced capital cost estimate suggests that it is capable of generating a robust NPV even in the current depressed iron ore market conditions.
Mineral resource upgrade
Flinders released an increased resource estimates for the Champion, Blackjack and Eagle deposits of the PIOP. Champion’s updated total JORC compliant resource is now estimated at 202Mt grading 55.7% Fe (silica and alumina content of 9.5% and 4.7%), with almost 100% of the resource in the indicated category. At Blackjack, the updated compliant resource estimate is 86Mt at 56.8% Fe (silica and alumina of 9.7% and 4.2%), with the indicated resource accounting for 98% of the total. Finally, Eagle’s total compliant mineral resource increased to 295Mt at 54.8% Fe (silica of 9.2% and alumina of 4.8%), with 99% of the resource in the indicated category. The company plans to provide an update on PIOP’s global mineral resource in the coming months. It will lay the foundation for the project’s BFS.
Good luck to all.
Toot Toot.