RE: RE: Open Question Not sure that it is that cut and dried. Hebei has to agree with detailed assumptions which have been pretty aggressive throughout the feasibility study.
Should Hebei through its due diligence decide that it will not proceed, I doubt that ADV will proceed with legal action as there is little possibility that it would win. Areas that ADV were perhaps too aggressive:
conversion from CFR to FOB price; $5 per 1% is for base price of ~180 per tonne, more realistic is 2-3 per 1%
Freight, $20 per tonne to China is $10 below current freight rate and $20 below consensus rates
Unsure if it is impossible to take a bulk sample how it determines concentrator flow sheet or correct feed mixture. weight recovery is still too high should be equal to iron grade for Trough ores
cost per tonne is less that all current producers, for high Mn ore which is challenged
Capex is low and some sustaining capital is hiding actual capital costs
high stripping ratio is buried in sustaining capital in years 1 + 2
If i can figure this out, so can DD by a large steel company , so hopefully they still want the product.
Financing comment on offtake financing for capex is simply wrong as offtake requires that project will have full financing package and is being built, when CLM did the deal with the Koreans, the project was almost complete and the prepayment for WC purposes is not the same as development financing.
.Sorry but important all facts are realised, cross thumbs that Hebei executes!