Iron Ore Price has increased to US$124, after a few months of hovering around $120 a tonne. With a dropping Aussie dollar to 90c this represents $137 a tonne, as Chinese steel mills start to replenish inventory.
ANZ Bank, has just released a new report yesterday, expecting Iron Trading to pickup in the next few months, as China's construction and manufacturing activities recommence and gain momentum.
1 million tonnes of Ore today’s iron ore pricing of ~$137 /t, approximately $57m in PROFIT BEFORE TAX from the project is expected in 2014, if we assume TRF receive $124/t for its product and operating costs of $80/t.
With TRF’s ~20%% stake, this would translate to ~$11.4 m to TRF. Not a bad arm tentacle of cash flow.
The Wilcherry deposits contain coarse crystalline magnetite and low silica contents which enable low cost and efficient production of concentrates containing over 70% Fe with very low impurity levels. Chinese demand for high quality Iron Ore remains very strong.
Recap for newcomers> What further news we can expect in the next few months?
Further High grade Manganese/ Hercules Iron Ore Proven Indicated JORC Resource PreFeasibilty studies Financing. Mine start-up is scheduled for late 2014
The fundamentals remain very strong with TRF's quality diverse portfolio of quality mining assets. A potential great year is coming with TRF's 15% Orinoco Gold (OGX) Cascavel, Brazil stake & Wilcherry Hill heading closer towards production.
I certainly hope to be buying more in the next few weeks at these opportunistic levels.
Arlberg1
TRF Price at posting:
9.6¢ Sentiment: LT Buy Disclosure: Held
