GREY:AXXDF - Post by User
Post by
greenandgoldon Sep 13, 2011 2:30pm
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Post# 19037683
1.1 Billion tonnes
1.1 Billion tonnesThe resource update is very good news. I think a 16 to 20 million tonnes per year operation is supportable with this size resource over the long-term (30 years or so). ADV should see multiple billions in revenue per year.
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ADV needs to get its long-term rail agreements done ASAP. I'm growing concerned about rail capacity on the QNSL, which currently transports iron ore for IOC, Bloom Lake, Wabush, and LIM. IOC recently ramped up to 26 MTA, and is considering expanding to an incredible 50 MTA by 2016! Bloom Lake is planning to expand from 8 MTA to 16 MTA. Wabush is steady at 6 MTA. LIM will probably ship 2 or 3 MTA. And there's a whole bunch of other juniors with plans.
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That's potentially 75 million tonnes per year, getting near the QNSL's max capacity of 80 to 100 million tonnes.