GBG 0.00% 2.6¢ gindalbie metals ltd

It's the opposite samson. The processing plant was built for 8...

  1. 100 Posts.
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    It's the opposite samson. The processing plant was built for 8 mtpa. The rail and port infrastructure was built for sixteen. They would need to double the processing plant to run at 16 mtpa which would be an additional $1bn or more. The good news is that they should be able to replicate what they ended up having to process the ore, rather than replicate what they started with (which couldn't process the ore). This is the exact reason they were able to ship 2 mtpa, they didn't have much hematite though as the deposit quickly ran out. BTW it is very beneficial to mine hematite of a decent grade particularly in the current market, they could contract mine this and be making $30/ton vs barely breaking even on the 65% magnetite. Also, it may sound silly but every single part of the processing plant will operate at a rate that exceeds 8mtpa. The mtpa 'nameplates' are averages that consider maintenance and downtime. Many plants end up de-bottle necking, implementing proper maintenance strategies and modifying parts to increase your online time and therefore production.
 
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