LCG 0.00% 6.0¢ living cities development group limited

fwl is the best iron play because.....

  1. 3,815 Posts.
    It will have the best margins for shareholders.

    http://www.ferrowest.com.au/yalgoo.html

    GBG, TRF, FWL, ROY, MMX, POL, CUL, IRN etc.etc

    The list of Iron Ore plays is endless.

    Only one of this list is different...and thats FWL.

    FWL is a Pig Iron play...Pig Iron is THE HIGHEST MARGIN Iron play. All of these others are iron ore shippers.

    FWL doesn't need high grade ore...as benification will produce a min 500K pa (probably closer to 2mill after full strilke length JORCed) of 96% PIG IRON...Yes..I repeat 96%

    This is not like every other Iron Ore play out there...which simply collects and ships iron ore...and therefore relies on ore grades

    Benefication is the key word for FWL.

    FWL has a near perfect location with port, road, rail, gaspipelines running thru its Yalgoo project

    Cheaper shipping cost..as Pig Iron is the end product..less volume.

    PIG Iron has a greater increasing market than Iron Ore

    CAPEX is estimated to be $330 mill (including a 20% contingency). Tell me where else you'll find such a low capex. The plants' part will be made in China but built here...genius...gets the benefit of cheap china cost..but made in Oz.

    In the short term, FWL will also produce concentrate to get cashflow going...genius.

    REMEMBER, FOR SHAREHOLDERS, ITS ALL ABOUT MARGINS. NEVER LOSE SIGHT OF THIS...even when people are bandying about "my stock's resource has this % Fe "etc

    I've held since low 20's and even now am buying more.

    Of course..don't take my word for it.....FWL has one of the best websites for explaining their project...Seriously recommend you visit it:

    http://www.ferrowest.com.au/yalgoo.html

    If you have any further questions..please call Ferrowest...I did..and got a return call from Brett Manning (MD) within an hour. he's really easy going..and spent 10 minutes explaing their reasons behind certain decisions.

    Good luck










 
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