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Re: FWL - Ferrowest Limited

Given the low volume, there shouldn't be any worries. There are always a few of the more impatient holders who thought they might just take profits now that nothing much has been happening for a little while. The fundamentals remain the same, and I would think it's a good idea to keep holding it and wait for the next announcement. Any positive news should put the sp back into gear.
 
Re: FWL - Ferrowest Limited

For $50,000 you could push this stock back up to 69c. Volume is so small its not worth looking at charts.

Countryboy is in for the long term hold.
 
Re: FWL - Ferrowest Limited

alanding said:
to be honest, FWL SP now is down and down. Can anyone tell me why? Becuase the low grade of Fe? Though the volume is tiny
Click to expand...

upka said:
although at low volume, there is a huge gap between the buy n sell depth, dissapointing to see this one going down like this.
Click to expand...

Hold on guys. FWL has run from 25c to now 60c in ONE MONTH (and yes, it did hit a high of 93c). It is tightly held and you got your announcement last week. What more do you want it to do? Is it still undervalued? Well, maybe - so give it some time. Short term profit takers could be in the market now; I'd be happy with 100%+ in a month.

So a bit of perspective with stocks like FWL. Time and patience is critical.
 
Re: FWL - Ferrowest Limited

Profit taking in the new finanacial year?

No stock can go vertical for ever,

Remember it ran from 20c to 95c approx in 2 weeks, thats unheard of,

The fundamentals are still there and strong, so if anything as the share price gets cheaper it should look more attractive an opportunity,

I firmly still believe the PFS if it shows the expected EBIT = a share price of $1

That being said the PFS is probably 2-3 weeks off so we can probably expect more weakness until then,

IMO a good time to top up will come soon
 
Re: FWL - Ferrowest Limited

LOL! It's very difficult to down ramp a stock that runs 400%. Perhaps the new guy to ASF has a point, we know most of these co's will most likely never produce, but that is not an issue...
danewbee you confuse me
I understand your posts, but that is not where my confusion lies. I fail to understand your intent. It would seem most of the profits have already been made?
Can you please expalin?
 
Re: FWL - Ferrowest Limited

danewbee said:
Same question, everyone is try to avoid answering: Who FWL with very low grade ore want to produce pig iron, while none of the others with much higher grade prefer to ship it to Asia? So the management team's capability should be careful checked.
Click to expand...

Mate the reason I get annoyed is when people ask questions without checking to see if they have already been answered, so this is the last time I will answer a question like this,

1. Re Management:
YOUNG_TRADER said:
Advantages
- Management = Ex MIS MD in charge of their Magnetite Project, Excel Coal

Management - http://www.ferrowest.com.au/directors.html
Click to expand...

So you see your question was already answered re credentials of Management, Brett Manning got MIS's Magnetite project up and running!


2. Re grade


So like I have said all along, if someone will back IDO's 600Mt@10%Fe Iron Sands project then FWL's 25% Fe doesn't seem that difficult now does it?

Also compare the mkt caps of IDO and FWL

3. Re Funding



Also


If IDO can get backing then FWL with its proven managment, better grade, better infrastrucutre and better backed Murchison connections should get financing
 
Re: FWL - Ferrowest Limited

1. Regarding management, OK, good at digging, is it really good at pig iron producing? Or could a good nurse become a good doctor? Or you are good at stock picking, are you good enough to run a pig iron business? Kind of convinced, but not fully convinced.

2. Grade. Is IDO a really a good example to help you? NO. IDO's deposit is in Indonesia, and it is iron sand, not iron ore. It is not apple to apple, twice. It is another good example of small low grade iron ore/sand miner want to be a pig iron giant. But IDO is on lucky side, because in Indonesia, cheap labor, cheap energy, loose environment law, and its is iron sand!

3. Still the same question, no one dare to answer directly: If the pig iron producing can make huge money, why we cannot build pig iron plants from coast to coast, and make a killings? Why BHP, RIO, FMG, GBG, CFE, MGX, PMM... don't do it here in Australia?

YT, you can put together as much blue sky stuff as you want. But My conclusion is FWL's success of failure is exclusively on the capability of the management. If you believe pig iron producing is as easy as digging, or you are 100% believing in that the management can pull rabbits from a hat, go investing along with them, and buy more at current pull back.

Or have another thought, go ahead, have a look at MGK, and to see how an one time darling of the market, will promised finance backing, and windfall profit, want to produce metal Mn, and only have found nothing happened, and its share price dropped from $2+ to 3c just a couple of months ago.

To some posters, keep calling me a downramper, or anti-YT, sour grapes, jealous, or no knowledge, newbie, or whatever you want. I guess it's moderator's call, not you, and a forum has to have two sides, otherwise, it is something else. If you have time, go answer my question, or ask yourself a question, do some research. Anyway, you need to check the CUL thread, my final post is agree with YT's revised analysis.
 
Re: FWL - Ferrowest Limited

Hi Dane,

A good post there, provides a balanced view,

These sorts of posts I am happy to resond to,

Re management, MIS didn't just dig up Ore, they built (along with Sino) a large magnetite project, which is what FWL are seeking to do, you can't say doctor to nurse more like doctor to doctor, FWL is being led by a proven

As for producing Pig Iron, Iron Sands is more difficult than pig iron and 10% is **** grade, if you read through the thread you'll see where I compared it to GRR who are looking to produce Iron Pellets from their 35% Fe deposit
Now as far as I can remember FWL's management is far superior to IDO's and on par with GRR

GRR are building a plant to produce Iron Pellets, and AXO are building an operation to produce Ferro Vanadium

I don't know why the others aren't, you'd have to ask their managment, but thats what makes FWL rare IMO, its a fuly intergrated player, it doesn't just dig the stuff up, it wants to produce the end product to supply to the steel mills,

If you speak to the MD he acknowledges that given the grade the project isn't that profitable as a DSO, but then again most are only profitable because of the recent price increaes in Magnetite Fe, however he feels Pig Iron mkt is alot firmer,

Its like criticising BP for producing Oil and refining it and supplying Petrol, or asking why don't Santos do it? Who knows

Fact is they have proven management, a few different options for technology and stand a good chance of getting a multi billion dollar project going,

All that a side, the mkt will pay up for the PFS, mark my words, they did for AXO and IDO and they will for FWL, wait and see!
 
Re: FWL - Ferrowest Limited

it has been 4 straight days of consolidations, almost 50% down from the peak of 90c. mainly small sellers desperate trying to get out with no buyers coming in, its a good time for bargain hunting, and top up somemore!
 
Re: FWL - Ferrowest Limited

Hey Guys and Gals this article just popped up on mine box might help to give the SP the liitle nudge it needs in the northerly direction again Worth a read all the stuff that us superior human beins on ASFS allready new but good to see it in print for the masses

First resource estimate for Yalgoo Iron Project




Ferrowest has announced an estimated mineral resource of 112.5 million tonnes at 25.3% total iron at its Yalgoo Iron Project in the mid west region of Western Australia.

The resource estimate has been completed for 10km of 27km strike at the Yogi deposit. According to the company, the resource underpins iron requirements for a more than 20 year project life.

The company intends to continue drilling at Yogi in the fourth quarter as part of the upcoming Definitive Engineering Study.

The new drilling and investigations will aim to raise the confidence of selected sections of the inferred mineral resource to allow determination of ore reserves in order to further advance the project, and identify further resources to add to the company’s resource inventory, which will allow flexibility in the development strategy for the Yalgoo Iron Project.

Metallurgical testwork is still underway, as part of the Pre-feasibility Study that is due for completion before the end of July. When the results of the metallurgical testwork are combined with the geophysical and resource models, this will provide an excellent understanding of the Yogi deposit and be used to define infill drilling targets.

Chief Geologist and Director of Ferrowest, Graeme Johnston, who has worked on many of the iron ore deposits in the mid west region including Tallering Peak, Weld Range, Jack Hills, Koolanooka and Blue Hills, is very pleased with the results:

“We are starting to get a good understanding of the potential of the Yogi deposit and I am looking forward to our continuing exploration,” Mr Johnston said.

“The correlation between our ground magnetics modelling of the orebody and the drilling results has been impressive so far, and the same modelling of the remainder of the 27km strike has given us some excellent targets for further exploration drilling later this year,” he added,

Ferrowest Managing Director, Brett Manning, was also very pleased with the result.

“We have been in operation for only 11 months and started the Yalgoo Iron Project with no resources and no drilling of our own. Our target for this first Resource Estimate had been 75 million tonnes and so we are very pleased with the actual result. Securing sufficient resources to underpin the Yalgoo Iron Project’s requirements for a 20+ year operation is a key building block in the Project’s development,” he said.

“In fact, with a further two thirds of the deposit yet to be drilled, the total resource potential is no longer an issue for us. We will continue to explore the deposit into the future but with an aim now of identifying the most economic sections of the deposit,” Mr Manning added.

Ferrowest Ltd is developing the Yalgoo Iron Project aimed at producing merchant pig iron from the Yogi magnetite mineralisation near Yalgoo in the mid west region of Western Australia. Proposed initial production is 500,000 tonnes per annum.

The plan to process the iron ore to pig iron on the mine site is premised on emerging mine site based technologies and excellent existing infrastructure servicing the site. The resulting value added merchant pig iron product will be a relatively high margin, high quality, low volume product for export to electric arc and basic oxygen furnace steel making plants worldwide.

- 03 Jul 2007
 
Re: FWL - Ferrowest Limited


Thanks Mobcat

I think this part is key:

"Metallurgical testwork is still underway, as part of the Pre-feasibility Study that is due for completion before the end of July. When the results of the metallurgical testwork are combined with the geophysical and resource models, this will provide an excellent understanding of the Yogi deposit and be used to define infill drilling targets. "


I think a lot of people really don't know what a PFS is (I didn't). Once the EPS is there in black and white, the market has to situp and take notice

YT...from your experience...do you think there is a possibility of the JORC resource being upgraded as part of the PFS?
 
Re: FWL - Ferrowest Limited


This is the kind of YT's post I like to read, no 99% or 1% show off things. You never know where I am. I am glad I am on most people's ignore list, so I don't piss them off. They are just your follows, most of them contribute very little in the discussion.

Since you mentioned times and times again, it seems you have a very good feel about the management, it is the key. So good luck then.

I only invest what Aussie is good at in Australia. If I want to invest in pig iron companies, I will buy those companies shares in Korea, Japan, and even in China. Of course, FWL has a great story to tell. If success, the leverage is huge. Anything can happen. Good luck to the holders.
 
Re: FWL - Ferrowest Limited

Danewbee,

You have asked on a number of occasions the following,

"Still the same question, no one dare to answer directly: If the pig iron producing can make huge money, why we cannot build pig iron plants from coast to coast, and make a killings? Why BHP, RIO, FMG, GBG, CFE, MGX, PMM... don't do it here in Australia?"

If you had bothered asking the company directly as I did rather than employing your monotenous, negative, alarmist, emotional, rhetoric you would have realised the following;

The conversion of magnetite ore into Merchant Pig Iron requires a pure ore that is low in contaminants. Intrinsic to the recent JORC was the confirmation that FWL's ore is low in contaminants.
The conversion of magnetite ore into Merchant Pig Iron requires sufficient energy to facilitate the process. FWL has a natural gas pipeline running straight their tenement; which most mines, I'm sure you will agree, do not have to begin with and are required to build at a massive expense should they require it. FWL has even considered the carbon debit under a proposed carbon trading scheme, claiming the ITMK3 produces 30% less greenhouse emissions.
FWL is very lucky as it sits right on a major highway and is just down the road from Geraldton - a major port - another factor that helps make FWL's project economic.
The technology for the conversion of magnetite ore into Merchant pig iron is a relatively new process and the technology involved has come a long way. The ITMK3, through 'Cleveland Cliffs', has had a full scale demo facility (in the US) in action for 12 months. Clevelend Cliffs is very positive re: the integrity of this technology and so is FWL.
Many junior Iron Ore miners have JV's with Asian companies which involve processing in Asia. Rather than just dumping ore on a boat, FWL wants to be unique and add value and therefore fetch a premium. FWL has been planning their PI project since before the float - it's a very clear, deliberate and well thought out mandate from a very experienced board.
So if you have all of the above you can process Merchant Pig Iron and make a mint.
 
Re: FWL - Ferrowest Limited

"FWL has a natural gas pipeline running straight their tenement; which most mines, I'm sure you will agree, do not have to begin with and are required to build at a massive expense should they require it."

Don't get too excited about that pipeline bro, we've already got three of the biggest alumina refineries in the world hanging off the end of it that (on a daily basis) are gas restricted as well as a couple of 130MW gas turbines that more often than not are running on diesel (you don't want to know what that costs) and theres more.

Infrastructure will be expensive.
 
Re: FWL - Ferrowest Limited

a bit of history....

Brett Manning, Barry Wyatt, Nik Zuks, MidWest... what do they all have in common .... Kingstream Steel, Ken Court, Richard Court and the WA dream of steel making -- anyone remember this? maybe not cause it never happened -Kingstream sold off Tallering Peak (Mt Gibson - now shipping hematite ) Koolanooka (MIS now shipping hematite ) Jack Hills (Murchison now shipping hematite )

dreams of steel faded to exporting dust (very profitable iron ore dust though)

WA dreams of downstream processing of iron ore have pretty much remained that - BHP had a good go with the HBI plant - now mothballed - Rio are still going with their HISmelt but only cause they have plenty of dollars to pour into it - there was a group in SA (Ausmelt?) that dreamed - Clive Palmer's mob Minerology (or something) dreamed ... MGX has a plant on the books - actually that was MGX's original plans, a magnetite pellet plant - MIS has a magnetite project on the books - Gindalbie is that magnetite too?

eventually these projects will become profitable - but really only once grades in the pilbara start to drop below 60%

would be interested to see where the profitable pig iron plants are in the world - i suspect they are in countries where there are high subsidies for steel-related industries (Russia, China etc?) Also how much is global trade? And how much of that is related to direct JV arrangements (like I think GBG plans with with CHinese company & FWL for that matter)

I suspect these JV arrangements with the Chinese are to some extent a necessary hedge to try to break the Australian cartel on iron ore - a couple could come to fruition just to prove the fact there are options and hopefully lower the iron price - maybe FWL will be one? I suspect GBG is ahead at this stage? but processing is a different business to extraction and i suspect it will be quite a fews years till any of these dreams become reality
 
Re: FWL - Ferrowest Limited

Looks like the start of a new elliot wave, my prediction is fwl should bounce from the high 40s (middle boiler line) in preparation for the PFS and then peak after the announcement. Then consolidate to complete the wave. Any thoughts?
 

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Re: FWL - Ferrowest Limited


I notice you 'conveniently' fail to mention why Kingstream failed. I don't see how this relates to Ferrowest. You really need to visit http://www.ferrowest.com.au/yalgoo.html


Kingstream Resources.


This project has failed and the following information is provided for historical interest.

An entrepreneurial group once obtained the rights to iron ore deposits in the Tallering Peak area at a very low cost for reasons of its low opportunity value. These were was cheap because of the high cost infrastructure requirement for being isolated without transport and port facilities.

The operators believed production would be be in the "lowest quartile of world productioncosts" and therefore would be technically efficient but they faced high overhead cost penalties and so were economically inefficient.

Reflecting regional politics (National Party promoted that supports high cost regional development) the venturers obtained government assistance to offset those high infrastructure costs (to pay for the economic cost being the reason the deposits were available cheaply.
Note. The low cost nature of the deposits was made evident in April 2002 when, on failure of the venture, the deposits were acquired for just US$2.3 million by Mt Gibson Iron venturers a cost which included access to market and technology data for downstream processing valued at $12million. The Government of the state is understood to have outlaid US$3million in addition to its internal activities.
​
The endeavour was evolving at a time when BHP, as a large iron ore producer deferred the second stage of their DRI iron project, and struggling to justify continued operation. There were also other steel producers intent on investing.
 
Re: FWL - Ferrowest Limited

Pommiegranite said:
I notice you 'conveniently' fail to mention why Kingstream failed. I don't see how this relates to Ferrowest. You really need to visit http://www.ferrowest.com.au/yalgoo.html
Click to expand...

In your link PommieG you'll note Yalgoo is further from infrastructure than Kingstream was (Tallering Peak is just north of Mullewa, closer to gas pipe, and they were going to use Geraldton port infrastructure etc, then they/government decided to build new port - ie Oakajee) This all relates to FWL because 1) they are in the same region 2) iron ore processing in WA has been littered with dreams that didn't come to fruition and the reasons you gave for Kingstream haven't gone away.

At the end of the day there's still a long way to go for FWL - share price will still rise an fall based on its progress, partners may come in, finance may be raised etc etc - so short-medium still opportunities to take advantage of this (as many did with Kingstream)

I will start a new thread to go through the iron ore processing dilema
 
Re: FWL - Ferrowest Limited


56gsa,

I do appreciate this discussion, but really think you need to have a thorough read of Ferrowest's website and recent announcements.

Infrastructure

In the link i provided, you will see that Yalgoo has a Railway & gas pipeline running through it. Tallering Peak had neither.

Tallering Peak 2/10
Yalgoo 10/10

Capex

Tallering Peak proposed a $2.7 billion plant at Oakajee
Ferrowest will build Beneficiation & Iron Nugget Plants onsite with estimated costs of $330 million (including a 20% contingency)

Tallering Peak 1/10
Yalgoo 10/10

Cashflow

Tallering Peak was dependent on $400 million goverment subsidies. Very political and nowhere near enough

Yalgoo's project model suggests the possibility of shipping magnetite concentrate initially to generate cashflow until the pig iron production is off the ground.

Tallering Peak 0/10
Yalgoo 8/10

Production

Tallering Peak was looking at producing steel sheets. What the hell is that?

Yalgoo project is based on producing pig iron pellets using recent technologies rendering production extremely efficient/high grade

Tallering Peak ?/10
Yalgoo 10/10

Market

Tallering Peak was a project dating back 10 years.
Yalgoo project is current.

I'm assuming that I really don't need to go into the change of the demand/supply equation of steel. Suffice to say Pig Iron is hot.


Tallering Peak 3/10
Yalgoo 10/10

All in all, the only thing that Kingstream had in common with Ferrowest that they both had/have iron resources in WA.

ps. Nik Zuks although MD of Kingsteel, is only a shareholder of Ferrowest.
 
Re: FWL - Ferrowest Limited

Pommiegranite said:
ps. Nik Zuks although MD of Kingsteel, is only a shareholder of Ferrowest.
Click to expand...


Plus the fact that the guy made a mistake once with Tallering Peak, u would think he'll be more carefull this time around. I still remain confident on this one, bt somehow the SP has to hold up
 
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