There are many differing opinions on this subject, which is cheaper, which is better, the list goes on. I don't dispute over time that shipping ALL (nickel and chrome) ore out by rail will be cheaper on a per lbs basis than road. What I do dispute, is for Noront specifically, over the short term, would it actually be more advantageous for shareholders to have a road?
I was told quite frankly about a month ago that the only reason Noront doesn't care is simply because of what they'll be transporting.........high grade nickel, not chrome. Seems to me much of the argument is based on what people are invested in. Many of the KWG etc folk are invested for chrome, so rail in their opinion is the only way. The chrome is going to be a much bigger burden because of the sheer quantity. Because of this I can see why these investors are pushing for rail. But after the NR yesterday that ANL posted, I think indications are that we are likely going to see the road option. IMO Noront, at this point because of eagles nest, is the only company who is in a win/win situation no matter which way the infrastructure cookie crumbles. Road is the fastest solution and would likely garner investors a quicker buck than rail, believe it or not. On the other hand, rail is the cheapest solution for the grand picture, which will net more profit per load.
I guess it all really comes down to what company you're invested in, and what your investing time frame is. I would like to say i'm in this for the long haul, but in truth, I'd like to see some returns within 2 years. I believe many are the same. I think with Noront we're sitting pretty either way, but the more I really think about my personal investment strategy, the more i'm in favor of the road. I have said for years that I don't believe any of the juniors will "mine this ourselves" like is being portrayed. I think the whole lot of us will be swallowed up. With road I believe it is the biggest short term bang for our buck which will result in a higher buyout price.
All just my opinion.
djje
