RE: Its still about the resource. Fe. If you think the Chinese are morons and don't see what's happening in the trough, you are crazy. The trough is actually becoming a disaster and has many problems. ADVs deal is delayed because they are rethinking everything. Do not kid yourself the Chinese are maticulus and take their time with everything. I laugh my off when I see the likes of these junior ore companies in the the trough proclaim how their costs are going to come in at less than $50, yet you have proof right in front of your eyes at how costs are out of whack...LIM, Cliffs and RIO just recently stating their costs are close to $100. All pure facts.
I also laugh at how these companies who were going to participate in the CN rail Feasibility study quickly came out and stated right after the CN announcement that they were not moving forward, that this will "have no impact on our projects. Really, then why were you participating in the first place.
AXI from day 1 stated that their competitive advantage was their proximity to water and no need for rail and reliance on third partires for rail and port. They also brought up the issue of rail capacity in the trough, something the analysts conveniently never mentioned. Well all of this has now come to light and the analysts are eating the same that they've been feeding the market the last few years. I don't give a rat's * how much iron ore you have in the ground and what the grades are. If you can't get it on a ship it .ain't going anywhere. The Chinese know that with RB and Tuktu, they can have all the iron ore in the world they want and they know there are no rail or port issues which they have to deal with. If that is not appealing enought for them, then I don't know what is.
Goldboy himself can keep throwing the NPV numbers up all he wants. At the end of the day, the NPV is greater than $0 which means the project is feasible. Is it as good as some other projects out there...no it is not but our project has a much much higher probability of being put on a ship than many other projects out there. That is the question you have to ask yourself with any of these iron ore projects. Put the grade aside, the NPV aside and all that other stuff. WHAT ARE THE CHANCES OF IRON ORE BEING PUT ON A SHIP. With AXI, the chances are extremely good. They are also in a postion to optimize their FS so those numbers that goldboy keeps putting up are just that...numbers...