Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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Rio production figures - "We now expect Pilbara shipments to be 320 to 325 million tonnes (previously at the low end of 325 to 340 million tonnes) following modest delays to completion of the new greenfield mine at Gudai-Darri and the Robe Valley brownfield mine replacement project due to the tight labour market in Western Australia."
Yes this is very interesting 5x5.
In the FT today it stated:
Rio’s problems in iron ore trace back to 2013 and a decision to delay spending on new mines to replace ageing pits. As a result, the company has produced an increasing amount of lower grade iron ore. In the three months to the end of September, Rio produced almost 9m tonnes of this lower grade material, known as SP10.
https://www.ft.com/content/3a555491-dd07-4701-894f-58762175e7a0
Rio will need to reverse their 2013 decision to delay spending on new mines asap and stop producing the low grade SP10 rubbish and start producing high-grade DSO which is what the Chinese are after. DSO is most efficient & least polluting when converting into steel.
Thankfully we are right on Rio's boarder :)
Also expecting cost of production to go up -
"Pilbara iron ore 2021 unit cost guidance is unchanged at $18.0-$18.5 per tonne. Operating cost guidance is based on A$:US$ exchange rate of 0.75 (previously 0.77). It remains subject to price escalation of key input costs in particular freight and demurrage, diesel, labour and contractor rates and additional COVID-19 costs to support workforce vaccinations."
Bill used to work for Rio and has the contacts there.
Just imagine a JV with Rio who have a unit cost of under $20/tonne! (mouth drooling!)
Rio will need to do it IMO.
Yes. RIO been producing low grades and causing lot of pollution.
Being their neighbour puts UFO right at front of the queue of potential Takeover targets that RIO could be looking at to acquire deposits at higher grades.
Hanc0ck resource and grades are superb.
No brainer at 0.75
Multi-bagger this one. Just let it all unfold.
We will need to prove up considerably more first.
Not necessarily the case. Eg Capstone signed JV even prior to drilling.
Bill said once he has the independent MRE from Howard Baker (now obtained) he will show it to potential partners and then show the potential of the other holes in Hanc0ck.
Also Howard Baker did the Resource Estimation for Rio, so obviously they trust his work also.
That's very useful info., thanks Max.
In Turner Pope's 2/12/20 Research Note it stated that neighbouring our tenement included the Hamersley-Channar iron ore mine which was a Rio Tinto JV through its wholly owned subsidiary Hamersley Iron and Sinosteel Channar.
The mine produced 11M tonnes per year and produced total of 290M tonnes and is now at the end of it's mine life and is expected to close next year.
Rio really need to invest in new mines! And also in the high-grade stuff!
@max111 that's what i am hopping for a nice UFO/Rio JV tasty
Rio would be nice , we also know they put a bit in to get Hammersley , lets take a big fat cheque , straight to 7p
think i would take that option two @Smiler
I see RIO coming in here for Iron. This is shaping up to be same story as Havieron and Telfer. With Newcrest Telfer mine coming to end of life, they had to look for replacement with Havieron next door was a no brainer.
RIO iron ore grades been on the low side, so it would be a no brainer for them to take over Hanc0ck outright or coming in as JV partner just like Newcrest JV with GGP for Havieron.
How many rode GGP from 0.38 to 38p ???
Not many i think. That would be 100 bags....wow
At UFO i would be happy with 20 - 30 bags.
Very much looking forward to the initial economic assessment of our 1st MRE to be announced either Monday, or more likely Tuesday (day of the Investor Webinar).
Brodie Good said the company was “very pleased” to be in a position where Mining Plus was finalising its initial scoping study, with the board “looking forward” to sharing its findings with the market next week.
https://www.sharecast.com/news/aim-bulletin/alien-metals-awaiting-results-of-han****-scoping-study--8213986.html
A couple of weeks back Chris2 estimated that it would take 8-10 years to get the ore out of the ground at Han****. I chuckled a little and asked for the logic which never came.
GreenRoc recently span out of Alba and have a Graphite deposit in Greenland. It is on surface so you can apparently see it as you walk. They're probably a little behind UFO in the process but the new CEO there reckons about 2-3 years for production.
I would put production at Han**** at 2 years. If we get Rio on board then possibly less. By then the iron ore price should be feeling the full effect of the demand pull from the global economic recovery. Could be great timing.
What's people's thoughts?
I agree with DSO production in under 2 years.
This is the best article with regards to timeframes:
"How long will this process take overall?
That’s hard to say, given that many operations in Australia are hamstrung by the coronavirus at the moment. But it’s worth noting that peers of Alien’s working similar operations in a similar environment typically take about 20 months from establishing a resource to digging up first ore."
https://www.proactiveinvestors.co.uk/companies/news/957536/alien-metals-making-strong-headway-with-potential-dso-operation-at-han****-957536.html
Atlas Iron built their open pit mine within months:
https://www.youtube.com/watch?v=xFE1lAPh0g4&t=297s
Fenix have outsourced all their mining to https://www.maca.net.au/.
Maca built Fenix's mine within just 4 months.
They have a very simple operation at the mine. Just 1 excavator, 3 trucks. Crushing & screening using a mobile modular unit.
DSO is the easiest, cheapest and fastest route to income for a junior miner.
Thanks Max, I'll take away and digest. In the meantime I'll await Chris' response to either back up his 8 years claim or hold his hand up.
@drbs3 you put that well didn't know alba had iron ore either . Yesninthink in under 2 years
2020Upside, I was referring to Graphite held by GreenRoc. I don't believe they have iron ore. If they do it isn't one of their big plays. Thought it was relevant as I imagine with it being at surface that it will be a similar extraction method. 2 years isn't so long. Churn out 1mt per annum even at a measly $20 profit is $20m profit per annum. Use that to get Brockman into production which early estimates predict it could be 10-15 times bigger than Han****, then if you can hold 5 years you will be taking the value of your holding today in annual dividend payments. I must admit, that sounds a bit rampy, but logical to me
If the iron ore is there and it's 60% grade and iron ore can keep above $80 then I can't see why it won't happen. The likely hood is that all 3 of those will be a tick in the box. If
ill go on record and say if the study we will see on Tuesday is good then less than 1year/before end 2022 a trunk will have UFO DSO on it or it will be sold off in deal.
Supply & Demand of Iron Ore:
Supply:
70% of Iron Ore is supplied by the top 4 producers and their production is forecast to remain flat. They are engaged in replacement tonnage and not additional tonnage. Vale CEO just said Iron ore market will stay 'relatively tight'.
Chinese interests in Africa require at least 10 years of development and even then, will only be able to supply 10% of China’s iron ore requirements (without military coups).
Demand:
Demand for steel has been skyrocketing and will continue to increase significantly as the Trillions of dollars of infrastructure stimulus start filtering through, plus with demographics the middle class in Asia is expected to increase from 2Billion to 3.5Billion by 2030.
Consensus for Iron Ore is around $130-$160 (without the Infrastructure Stimulus Bill).
https://www.youtube.com/watch?v=crRaraVj_Nk&t=341s
Plus we have DSO which sells for a premium.
Next week should be good one with Hanc0ck scoping study due any day now.
Hanc0ck maiden JORC compliant inferred resource of 10.4Mt @ 60.4% Fe is superb. More to come here.
UFO bottomed out now and looking very good for a nice rally in Q4 with further Operational updates
2022 should be extremely rewarding for all holders already in OR getting in from these lows.
Tuesday will see everyone up at 7. Noticed you are in Castillo MrP, had it and Chesterfield as monthly punts. Still holding CHF, hope CCZ comes good for you. Copper really on the move. Silver must be next to fly.
About 70% Gains to be had just to get back to last Director buy level. I think I'll have a cheeky top-up on Monday. Exciting news coming on Presentation day. Ironore and Silver on the way back up. Zinc flying...and more Metals to find at EH. Mexico news could come out of nowhere! Exciting times ahead at these Rounded Bottom levels.
5×5Criore
Agree. Copper flying. Silver has got to be next in line. Just a matter of time, but when Silver rally starts, it would be well worth it. Any day now.
On more detailed analysis this weekend of all UFO projects and their locations, i would now add BHP and Fotescue Metals as potential suitors in addition to RIO for various deposits between 3 of them OR coming in as JV partners for different projects.
Also noticed that "Brockman" and "Hanc0ck" were both identified earlier by BHP as part of their early work. Just like Castillo Copper's massive ARYA deposit was highlighted by BHP much early on as a must drill target.
I like the multi-commodities exposure at UFO.