IOH
Mkt Structure
Shares
77m
+ 13m unlisted 25c - $1.5 options
The Top 10 Shareholders own 65%
and Sumisto Iron a subsidiary of Multi Billion Dollar Sumito Corp holds 10%
Mkt Cap @75c = $58m Current
Cash
$1.5m + $10m if options exercised
Projects
Phils Creek Iron Ore, 100%, W.A.
JORC 8.6Mt's@ 58%Fe + 5.4%Si + 3%Al +0.1%P + 7.6%LOI
with an additional lower grade
5.1Mt's@53%Fe
note this lower grade ore can very easily be blended with the higher grade ore as due to the high LOI (which is a good thing) the calcinated grade of the higher grade ore will probably be 62%Fe+
In any event it is a DSO Heamatite project which should have its
Scoping Study released soon (was due early Sept)
From looking at the progress of
AGO and
TTY a scoping study was the last stage before they went to a decision to mine, so big things
could be in store for IOH, to quote the company
"A Scoping Study on the Phil’s Creek Project has commenced following on from the successful drilling program previously announced. The Directors believe that the commencement of Phil’s Creek Study is a significant milestone in the evolution of the Company from an explorer to a potential producer of iron ore."
I have now realised that with Iron Ore, its not so much the size of the deposit, but if its
DSO as this greatly reduces lead times to development and requires very minimal Cap Ex and its
proximity to transport infrastructure.
Phils Creek ticks off these boxes as
1. The deposit is DSO
2. A scoping study should be completed and released any day now
3. The project has access to either BHP's or RIO's rail lines which run through the project area
DSO Project Comparison
AGO JORC 10Mt's@57%Fe + 7%Si + 1.8%Al + 0.13%P + 8.7%LOI
TTY JORC 9.73Mt's@61%Fe +6.7%Si + 2.93%Al + 0.09%P
Now what this comparison shows is that both
AGO and
TTY have been able to build $250m -$350m mining houses off 10Mt DSO Heamatite deposits and yes
while they do have SIGNIFICANT other assets and projects (AGO in particular) the point I'm making is that IOH's Phils Creek stands a really good chance of becoming another possible DSO operation which would surely catapult it into the $150m+ mkt cap range
In any event the scoping study will hold all the answers
Extension Iron Ore, 100%, W.A., part of the same area as Phils Creek
JORC 46.8Mt's@50%Fe now this is low grade Ore and I doubt it can be blended with other Ore's because the grade is too low to be DSO, but with some benefication it should be ok
There is also good potential to expand this resource, but the immediate priority for the company is to find the higher grade ie 55%Fe+ portions of the mineralisation so as to possibly add it to the feeder for the proposed DSO at Phils Creek nearby.
Koodaider Iron Ore, 100%, W.A.Just north of Phils Creek, Extension Project area
Buckland Hills Iron Ore, 100%, W.A. This exploration license is 7Km's away from the huge Robe River Mesa J Mine
Not much else to say
Summary
- Chart wise 60c seems to a strong level of support, I say this because on the 16th of August which was the worst day we have seen for a long time, alot of stocks hit rock bottom, alot of support levels where SMASHED! IOH fell to 56c but CLOSED UP at 62c
- Scoping Study for Phils Creek due soon
- A very interesting develpment in that Billionaire Mr Kerry Stokes, has bought 19.9% of the company from a founding director
- The Top 10 Shareholders own 65%
- Sumisto Iron a subsidiary of Multi Billion Dollar Sumito Corp holds 10%