DOMINION POST. 9 October 2012
TTR confident, despite fall in iron price.
James Weir and Bloomberg reported in the Dominion Post Businessday of October 9 a story covering the recent fall in international iron ore prices. In providing industry analysis TTR was interviewed. The following are quotes that arose from an interview with TTR for the story.
“In New Zealand, TTR is considered in the industry as the most advanced of those hoping to mine ironsands off the west coast of the North Island.
“ TTR says it would be a ‘low cost’ producer, and so argues it could be a more attractive proposition because low prices may put off other potential projects, possibly leading to a supply gap in the years ahead. ‘Ironically, {a lower iron ore price} should make us more attractive, but unfortunately it scares money and investors away,’ TTR chief financial officer, Andrew Stewart said.
“ ‘The hard part is convincing investors that our story jumps higher than anyone else’s story. The future prices, when we are actually in production, {are} what people should be looking at.’”
“Stewart said he hoped ‘China keeps chugging along and therefore…the demand for resources will… remain, although it is subdued at the moment’.
“ ‘TTR’s development is based on being a low-cost producer. So for us a low ore price means a future value erosion, but we still believe we will be a low-cost producer and would be economically viable at a lower iron ore price.’
“TTR would not say what it hoped to produce the iron ore for, but as a dredging operation it avoided costs such as drilling and blasting, and did not need a port or a rail line…”
