Originally posted by rusty02
Hi Aqua,
Correct this is a DSO open pit so minimal CAPEX. What you need to take into consideration is the low class 2 spot price of $5/lb as compared to rising $9/lb for class 1 next year plus premium for purity. At present SJ is fine line on economical but IMHO prices should strength one Trump and Xi makeup and kiss these trade wats goodbye as it is effecting all commodities
The other issue I have as a production engineer is the logistics between the ramp and the on board loading. Hopefully this doesn't create a bottleneck.
Don't worry Sconi will be mined but to compare the 2 operations is just plain dumb.
We might have to catch up for a coffee some time.
Cheers
Hi Rusty, “but to compare the two operations is just plain dumb” well I think it’s fine. They are both in the same metal sector, thus same market fundamentals and in the end it’s profit that’s compared NPV IRR and risk via a discount rate. Actually the intelligent compare projects that way. Each has different risks and different rewards that are all model able. So I guess the market can’t compare 65 DSO lump magnetite from a leached gossamer Vs 62% haematite fines either right - but one is worth US$90/t and the other $70. I guess a Ferrari cannot be compared to a Holden either right unless you compare cost Vs benefit.
