Low grade ore has been in the news for the last few years because of TNG
and the publicity they've gotten.
It takes a while for people to realise what low-grade resourse actually means.
If your ore is 1/3 pure then the capex is 3x more. Its pretty much that simple.
Another thing that people dont consider is the time aspect to mine and process low-grade.
Sure the much higher capex processing and digging will amaeloriate that problem to
a certain extent but not fully. Time is money and the slower you put out end product
the lower your profit.
And another, with low-grade you are more susceptible to risk from a falling
ore price, as the complicated processing is not so easily adjustable to a lower
production rate.
I can go on, (including the high pollution that low grade processing puts out), but I wont.
Let the market decide.
TMT Price at posting:
76.0¢ Sentiment: Buy Disclosure: Held
