Replies to post #2691 on Alloy Steel Inc. (fka AYSI)

[littlefish]

Alloy is too small to be mentioned specifically for a multibillion dollar company doing less than $10 mill in biz the last several Qs with AYSI.
But the point with the link was showing the further development of mining ops for FMG. Remember, FMG just started shipping iron ore in May and their Cloudbreak mine just started operating.
With Christams Creek having larger reserves and FMG targeting that mine to push up iron ore MTA amounts more than Cloud Break in the near future, it IMO means Alloy will probably get MORE revs from Christmas Creek mining project than from Cloudbreak mining project.
Before the AYSI release, I was unsure how much of the revs was coming from the mine site and how much from the shipping terminal, off/onloading areas, etc... But the AYSI 8K spelled it out. I was thinking Cloudbreak may have been a few million dollars but it ended up being in excess of $5 mill plus this latest $1.8 mill order has at least a part toward existing (IMO i.e. Cloudbreak mine) ops.

Since Christmas Creek doesn't even have a base camp for the mine yet set up, FMG is placing this order rather early IMO. My guess is because they are expecting to load up AYSI fairly heavily so are getting stuff placed now.
With Solomon Tenements in the wings before long, Alloy may be looking at a near continuous (but uneven) flow of revs just from FMG here over the next couple years.
And there's a world out there that doesn't have Arcoplate. Yet... Hopefully that changes here with time and production ramp.
If I had to speculate, I would say having AYSI (and indirectly Gene since he owns more than 50% of the common) pick a majority of the BOD members on this potential JV slightly hints at maybe production being involved. If it was some sort of distributorship, I'm not sure it would be a big deal which part had more BOD members. Then again who knows at this stage. Plus the extra BOD members give AYSI an easy picking place for diversifying their own BOD. But I think Gene and Alan would be 2 of the 5 BOD members for the JV if it/when gets finalized.
Hopefully we find out about that end in the next couple months. It would get me excited if it involved production capacity:) at least in term sof putting it in light of what I've learned about customer shaving a hard time getting product in the past at times in places far from Malaga.

All IMO.