at last nose, you have come up with some argument rather than just blab. $1.6B capex is both 1 million ton pig iron and 4.5 million ton magnetite operation. this is much bigger than just 1 million ton pig iron which is why cost is higher but so are profits. the important thing is gbg is about 1.6B on infrastructure alone. grr is 0.9B. fwl only has the rail to fund. magnetite cost is $3/t higher than gbg starting cost but gbg will go down with scale. fwl has lower grade than gbg so i assume that is the reason but fwl are not also paying back interest on more than a billion in infrastructure debt at the same time. over $150 margin per ton on pig iron is at current depressed prices. long term average elsewhere in presetation of $500 per ton makes that $200 per tonne. iron ore price drop of $200 per tonne means iron ore producers would be giving it away. like all projects nose this one has some good and some bad but nothing fatal i can see. DYOR. it is nice to talk sense with you for a change cobber!
LCG Price at posting:
3.2¢ Sentiment: Hold Disclosure: Held
