If it successfully transitions from a model to a full operating process it will save the bulk of refinement ongoing costs. (Its PGM I am interested in - not iron though.) I seem to recall it was in excess of 50% saving -possibly more ?? - and is done on site- transport cost also saved?
Mullet Fish, I think unfortunately you're spot on and I canÂ’t argue that Pallinghurst will get caught up in the negative iron ore sentiment but I still feel that this stock warrants more cheerleaders. 40% of its investment portfolio (as at 31 Dec 2014) relates to a listed stock (i.e. Gemfields) that is up north of 30% in the last 3.5 months, yet Pallinghurst is languishing 15% lower than its December price. Iron ore only comprised 15% odd of the investment portfolio. TshipiÂ’s cash flow will certainly get hurt but it is a low cost open pit mine that can survive the storm. The ZAR platinum basket price is flat (up 0.5%) since December; Sedibelo was profit positive in FY14 with a sizeable cash balance, so again limited justification for the poor PGL share price performance. I think unfortunately PGL is a bit too small for the institutional chaps to consider and retail investors are avoiding anything with resources exposureÂ… so for now it stumbles
This group have a plan. They also have a process they follow. One of the mistakes people are making about resources is that they are assuming the future is going to be the same as the present. This comment relates to how miners do business. While they are rightly called price takers, how they run their businesses going forward is extremely unlikely to mirror the present. So mechanization and stuff like this Kell process (and other innovations) are going to probably significantly change the cost profile of these businesses.