IOH - Iron Ore Holdings

[canny]

Has anyone been following this stock?
It's shown a remarkable growth over the last few days. I bought in only a few days ago at 87c - and today it is already trading at $1.13.
There is little stock on offer as over 80% of the shares are held by the Top 20 shareholders, who include Westpac and AMP as well as a Japanese sounding company Sumisho Iron that I don't know anything about.
Something is obviously about to happen here, as they are in demand. It has been in the rumour mill - but no-one knows what is going on at this stage.
Anyone here heard anything?

 

[Epsilon]

It's believed their tenements (between Rio-Tinto's and BHP's) is an extension of the Iron ore tenements of both Mining Behemoths....
I would say you are on a very good wicket my friend.
I don't hold any.......The above information is only a rumour...Please do your own research prior to any purchasing-selling decision.......
Good luck....and.....And watch a new mining company called Korab, due to be listed sometime next week.......Better Uranium leases than CMR, right next door to the Rum Jungle historic Mine.......(where Compass CMR has announced plans for a new Uranium mine)......Cheers!!!!!!!!!!!!!!!!

 

[canny]

It's believed their tenements (between Rio-Tinto's and BHP's) is an extension of the Iron ore tenements of both Mining Behemoths....
I would say you are on a very good wicket my friend.
I don't hold any.......The above information is only a rumour...Please do your own research prior to any purchasing-selling decision.......
Good luck....and.....And watch a new mining company called Korab, due to be listed sometime next week.......Better Uranium leases than CMR, right next door to the Rum Jungle historic Mine.......(where Compass CMR has announced plans for a new Uranium mine)......Cheers!!!!!!!!!!!!!!!!

Thanks epsi - it's all looking too good to be true - now trading at $1.25 - and I'm not complaining - up 48% in a few days!!
I like the neighbours - BHP and RIO!!! Keep posting if you want to enter the September Stock tipping comp. Entries are open till end of August - but you must have 10 posts and an average over .3 per day (or something like that!)Good luck.

 

[Epsilon]

Thanks mate))
There is a reason "why" I, a well known prolific poster-writer, post so sparsely of late....(here and in another forum)......
Have a great profitable and apolaustic ride with IOH)))

 

[bailej03]

Yeah this things keeps going. Must either be some fantastic news or some big dumps on the horizon.

RSI suggests way overbrought, but its been there for a month now.

Good luck to all those holding. Problem with it being so illiquid is if it falls it will big time, but it will also make any shakeouts a lot easier. Maybe have to trade it without a stoploss. Anyway, I don't need to worry cause I wasn't smart enough to get in at any stage.

 

[canny]

Yeah this things keeps going. Must either be some fantastic news or some big dumps on the horizon.

RSI suggests way overbrought, but its been there for a month now.

Good luck to all those holding. Problem with it being so illiquid is if it falls it will big time, but it will also make any shakeouts a lot easier. Maybe have to trade it without a stoploss. Anyway, I don't need to worry cause I wasn't smart enough to get in at any stage.

I've got no stop loss or sell in - I'm holding for the ride and we'll see where it takes us.
This morning's article was very good reading:
Convincing Mal Randall to join the board of recent Australian Stock
Exchange-entrant Iron Ore Holdings (IOH) was not a difficult task.

Not because Randall was desperately looking for something to do at that
time; with directorships of five companies, including Consolidated Minerals,
Titan Resources and Thundelarra Exploration, he had plenty on his plate.

Instead, the veteran of 25 years with Rio Tinto, the majority being with
Hamersley Iron, was simply captured by the quality of ground being offered
to him.

"I read the draft prospectus coordinated through Hogan and Partners to raise
$6 million and I was honestly taken aback by what [IOH technical director]
Derek Ammon had pegged. I thought it was an opportunity too good to walk
away from. Given my iron ore background, I knew these sorts of opportunities
did not come up often."

That opportunity was a collection of tenements surrounding the major Pilbara
iron ore mines of Yandi and Yandicoogina, and the key attractions of the
company were simple.

"We're in the right commodity, at the right location, at the right time," is
Randall's basic summation.

The three-way combination also obviously pushed the right buttons of the
Australian investment community, which pumped the company's 20c IPO shares
to a value of 40c by the close of its first trading day in early-May.

Pulling in a double-bagger performance in a day was enough to grab the
attention of the mainstream press, and the company awoke on day two of its
public life to find itself in headlines throughout the nation's business
pages.

It was, to say the least, a fairly eye-catching manner in which to make its
public debut. But take a closer look behind those three principles - right
commodity, right location, right time - and it is easy to see how such
interest was generated.

Anyone who has kept an eye on the resources industry of late will know iron
ore has been running hot.

The world's major iron ore miners recently won an unprecedented 71.5% price
increase in their iron ore supply negotiations with Japanese steel mills,
and China's seemingly ever-expanding demand for steel feed has sparked a
wave of project proposals and iron ore IPOs.

For Randall, the strength of the iron ore story lies in the forecast that
world demand for seaborne iron is set to grow from 580 million tonnes in
2004 to some 820Mt by 2010, with the bulk of that increased demand coming
out of China.

Even allowing for the successful introduction of bolstered supply from
expanding BHP Billiton and Rio Tinto operations, not to mention potential
new feed from the presently undeveloped Hope Downs and Fortescue Metals
Group projects, Randall says there will be sufficient supply shortfall to
sustain strong iron ore prices for years to come. Hence now is the right
time to launch a company like IOH.

Which brings us to location. There is arguably no better address in the
world iron ore game than the Pilbara of Western Australia, home to the great
money-printing mines of BHP Billiton and Rio Tinto.

Randall describes IOH's land position - sandwiched about 100km north-west of
Newman and a similar distance east of Tom Price in the heart of arguably the
world's greatest iron ore province - as "the Pilbara equivalent of St
Georges Terrace", Perth's main commercial thoroughfare.

IOH's five iron ore projects - namely Lamb Creek, Yandicoogina Creek, North
Marillana, East Marillana and South Marillana - abut the tenements home to
BHP Billiton's Yandi mine and Rio Tinto's Yandicoogina operation.

Given the robustness of the iron ore industry, it is hard to fathom how a
small company like IOH could gain access to projects so close to not one but
two existing operations. According to Randall, the tenements were picked up
by Ammon at a time when the iron ore majors believed they had sufficient
reserves to feed world demand for the foreseeable future.

The proximity of IOH's tenements comes not only with great prospectivity,
but also potentially great infrastructure options.

The rail links of both BHP Billiton and Rio Tinto run directly through IOH's
tenements, and the proposed Hope Downs rail will pass just by IOH's
easternmost tenement boundary.

Third party access to iron ore rail infrastructure, both existing and
proposed, has been a topic of debate and even legal hearings in recent
years, despite the WA State Government mandating that such infrastructure
must be shared with new operators in the region. Randall is confident the
situation will have cleared up by the time IOH makes its push towards
production.

Additionally, the fully paved Great Northern Highway runs past the IOH
tenements all the way to the Pilbara shipping town of Port Hedland,
providing a fourth potential transportation option.

Truck-based transporting of iron ore may not yet be a reality in the
Pilbara, but iron hopeful Murchison Metals is planning to truck its produce
over 500km to the port of Geraldton. In comparison, IOH is 300km from Port
Hedland.

Randall, however, is careful not to delve too deeply into hypothesising over
potential methods of transport. Not yet, anyway.

The tenements host numerous outcrops of pisolite, the dominant type of iron
ore shipped from the Pilbara, and numerous grab samples from surface have
returned high iron ore grades also low in impurities such as phosphorous.
Furthermore, independent geologists have hypothesised the possible presence
of extensive iron palaeo-drainages in the leases.

But for now, priority number one is establishing sufficient resources and
reserves within IOH's tenements.

It sounds an imposing task, but Randall assured RESOURCESTOCKS it wasn't a
question of if the projects host iron, but how much.

Randall draws on an analogy he picked up during his numerous business trips
into China during his 25-year career with Rio Tinto to illustrate the
situation facing his company.

"It's a bit like when the young chef asked Confucius about the best recipe
for cooking Peking Duck. Confucius turned around to him and said, 'First my
son, get the duck'. I know that with Iron Ore Holdings we have the duck;
it's really now a matter of determining how big it is, and how juicy it is,"
Randall said.

As a result of this philosophy, IOH has so far abstained from entering into
any memoranda of understanding, off-take agreements or "binding contracts"
over any future developments, instead preferring to concentrate on plumping
the duck before determining the best recipe for cooking.

It is a difficult ask not to look beyond that task, particularly when the
pisolite ore within IOH's domain is also capable of being directly shipped.
Referred to in the industry as DSO, or direct shipping ore, the ore must
simply be dug up and crushed before it can be shipped, a far less
complicated - and substantially cheaper - process than the concentrating and
pelletisation of other ore types such as magnetite.

Most notable surface grab samples from two of the highest priority
tenements, Lamb Creek and South Marillana, assayed an iron content as high
as 60.81% (South Marillana) and a phosphorous content of 0.031% (Lamb
Creek).

Furthermore, recent scrub fires brought into stark relief several other
outcrops previously obscured by vegetation.

According to Randall, the projects already have visible ready-to-drill
targets, but IOH has, nevertheless, secured contract geologists to work to
generate further targets through remote sensing, aerial photography and
on-ground geological mapping.

Following mapping and target identification, IOH plans to commence drilling
as soon as possible with a view to announce an initial resource soon
thereafter.

Randall pointed out that IOH's market cap of just over $26 million is
comparatively smaller than many of the other iron ore hopefuls in the
region.

"It wasn't that long ago that some other iron ore exploration companies were
a 35c stock but are now valued in the order of half a billion dollars," he
said.

IOH boasts a particularly tight share register, with only 47% of the
company's 70 million shares tradeable. Adding weight to the register is the
presence of Sumisho Iron, a subsidiary of major iron ore importer Sumitomo
Corp of Japan.

 

[Chief Wigam]

Anyone still holding CMR? I am.

It's been suspended from trade pending an announcement. Anyone been fishing as to why?

 

[tarnor]

would post a chart but i always narf it...

this is starting to pick up in volume considerably.. sell side is fairly thin.. breaking out?..

 

[pussycat2005]

amazing run.... it just doesn't stop

broke $3.00

May 40 cents
December $2.91

 

[canny]

It's now looking too hot to handle for a while.
Made a nice profit - but needs to settle somewhere now.

 

[britishcarfreak]

Anybody holding>>>??

This looks like a good time to enter - at 97 odd cents.

Can anyone explain the major drop back from its pre-christmas peak?

There was an announcement on Jan25 about a poor result at one location - but the price was dropping way before that.

 

[michael_selway]

Anybody holding>>>??

This looks like a good time to enter - at 97 odd cents.

Can anyone explain the major drop back from its pre-christmas peak?

There was an announcement on Jan25 about a poor result at one location - but the price was dropping way before that.

Hi does anyone knwo the current price of Iron Ore?

And sites? any historical price charts?

thx

MS

 

[britishcarfreak]

I may feel like a total idiot in a week or so but I jumped in today when it hit 80c. I can only assume that a lot of people are offloading from this along with the trend. It can only go so far...... DOWN.

 

[johnsmith]

trying to catch a falling knife? :

well, only newbies would buy in for the reason you did. You'll learn your lesson soon enough if you survive it.

Old hands will wait for confirmation of reversal before putting their hard earned into any stock.

 

[britishcarfreak]

yep - I'll have to run a tight stop on it. sometimes a hunch is worth it.

For what it's worth - how would you confirm a trend reversal on this stock?

 

[britishcarfreak]

up 11% at 1.30pm today...

 

[nizar]

up 11% at 1.30pm today...

nice one...

 

[britishcarfreak]

Still going - presently 18% up. I wonder when the second sell off will come in - or whether the major sell over the past few weeks has shaken out all the impatient people.

 

[britishcarfreak]

guys, this is moving fiercly again today... 104.5 at present

 

[britishcarfreak]

I'd really like someone to analyse my logic on this trade. I posted earlier in the week that I had a hunch on what was happening. I'll clarify that I wasn't totally uneducated and I did have some reasoning for saying "It can only go so far...... DOWN"...

In my opinion there was a support at 80c from last year. I had been watching it carefully last year when it blipped 80c-120c a few times. I missed those opportunities to ride.

Recently some hype and some rumours pushed the stock to stupid levels and it had to come back down. Just how far was always a question - but I felt there was support at 80c. Thus I entered at 80c after it tested this briefly with an intra-day low of 79c.

I was prepared to action a stop on this if it went markedly below the support i.e. get out at 75c.

But using a 20day price channel the next day - and the day after - proved a reversal of trend and confirmed that I should stay in. I'm currently sitting on a 40% gain over 2 days. The price channel shows two good solid days of pushing up from the bottom.

Picking the exit will be hard - but any time now is good.

:goodnight PLEASE ANALYSE MY REASONING AND RESPOND - I'D LIKE TO KNOW IF ANYONE THINKS MY REASONING IS FLAWED.

See attached for graphs.