Updated Valuation and SWOT - RSG, page-73

@eshmun

"At Kiruna the "ore contains a very pure magnetite-apatite mix, containing more than 60% iron and an average of 0.9% phosphorus. Black ore contains less apatite than grey ore.

The original reserve at Kiruna was some 1,800Mt. As of the end of 2008, LKAB estimated that the current proven reserve at the mine is 602Mt grading 48.5% iron, with probable reserves of 82Mt at 46.7% iron."

At 48.5% iron one tonne of the rock from Kiruna (before it is mined and beneficiated) is worth US$59 based on the current iron ore spot price of US$85/t."
-------------------------

Even FMG would be laughing at those IO grading compared to their relative low grading by Oz standard! With magnetite, I would be very cautious since it requires value adding beneficiary and you only have to look at GRR on what value destruction can do!

My point about low grade mining regardless if there is a decade LOM is that it is very price sensitive to the commodity pricing + precise mining intolerance. UG is much more expensive to mines compared to open cut and you can se why Boddington/Super pit is up for sale with no takers.

However if the gold price keep rising, the leverage would supercharge.

Technically RSG is in a big range so I am prepared to hold for the longer term provided no bad news.

Thanks for the detailed response.