the crush, page-16

Dear Nose and Eyeoverit,

I remember saying iron ore price will come down. People are predicting $80/t in 2016. Nose, how's your CAP holding up?

When come to iron ore, you need to mine on massive scale to be cost-effective. Eg that's one reason why FMG pushed so hard to get to 155mt/yr. IMHO companies like ROY, CAP, FWL etc. are not competitive enough. Somebody needs to tell TFA International. Even FMG's 155mtpa is still too small but reached critical mass to be cost effective.

For example, ROY talking about 10mtpa, 4 Bt iron ore market cap $14m. IMHO market simply doesn't believe it will into production. IMHO it is not how much resource in the ground but how BIG is your production.

Have a look at AGO. AGO director spoke about differences between using trucks vs railway. I cannot remember exact cost I think he said trucks cost about $80/t and railway about <1c/t.

So what about FWL?