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Iron Ore Plays - Discussion

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Damuzzdu

Damuzzdu

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Thought I start a new thread about Iron Ore plays in general.

To get this started I will list the stocks that I'm following with a website link for each of those companies. These are smaller type companies.

Iron Ore seems to be one of the hotter sectors right now, just like Uranium was until a few months when it started to cooled off. U seems very much on the nose part from MTN

Other things in here we might discuss might different type of Iron Ore plays haemetite vs magnetite and the various benefits of each and what companies can do to sell these, grades and the where the general industry is heading.

List of companies:

ADY http://www.ady.com.au/
AQD http://www.ausquest.com.au/
BCI http://www.bciron.com.au/
CFE http://www.capelam.com.au/
CAV http://www.carnavaleresources.de/public/text.asp?sid=2&mm=24&msub=10&lid=2&mid=1410
CAZ http://www.cazalyresources.com.au/
CUL http://www.cullenresources.com.au/
FWL http://www.ferrowest.com.au/
FMG http://www.fmgl.com.au/
GXY http://www.galaxyresources.com.au/
GBG http://www.gindalbie.com.au/
GWR http://www.goldenwestresources.com/
GRR http://www.grangeresources.com.au/
GUJ http://www.gujaratnre.com.au/
IRM http://www.ironmountainmining.com.au/
IOH http://www.ironoreholdings.com/
IFE http://www.ironcladmining.com/ (new listing soon)
JMS http://www.jupitermines.com/
MIS http://www.midwestcorp.com.au/
MAK http://www.minemakers.com.au/
MGX http://www.mtgibsoniron.com.au/
MMX http://www.mml.net.au/
PMM http://www.portman.com.au/
POL http://www.polarismetals.com.au/
RHI http://www.redhilliron.com.au/
RVR http://www.redriverresources.com.au/
ROY http://www.royalresources.com.au/
SRK http://www.strikeresources.com.au/
SDL http://www.sundanceresources.com.au/
TTY http://www.territoryiron.com.au/
UMC http://www.unitedminerals.com.au/
WPG http://www.westernplainsresources.com.au/index.html

Specific discussion about the companies should be left on their own thread, but maybe comparsion of various companies could be discussed here. Size of mines, JORC's, PFS, BFS etc

Cheers
Muzz

PS: I've left out BHP and RIO as they are more diversified miners.
 
For sure, hot sector right now, I been watching AGO, IRN AND MGX for last few months all doing very well, AGO's share price has doubled in the past 2 months!!!!!
 
Another: ICN - http://www.iconenergy.com

I hold a good holding in MMX, SDL, and POL, and banking heavily on the sector - so hope at least one or two of them do nicely in the next 6-12 months!

MMX is my leader at the moment.. I think that has very solid gains ahead, risk is getting less and less.
 
badmarty said:
For sure, hot sector right now, I been watching AGO, IRN AND MGX for last few months all doing very well, AGO's share price has doubled in the past 2 months!!!!!
Click to expand...


Have a look at PMM, now that's the type of share price you want, and what do you know up again this morning to $10.45.

Cheers
 

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If you think CFE looks good have a look at the FXR announcment about Iron ore prospects and the size of their magnetic anomalies compared to Cape Lambert. Also PLV has small Iron Ore prospect on an island off WA next to ****atoo Island where Portman are already producing. Both interesting to me, potential plus, but you'd have to be in for the long haul to do any good if they come up trumps. I hbold FXR so the iron ore angle for them is a bonus for me.
 
You may want to add Yilgarn Mining (YML) to the list too. They look to be moving to really focus on Iron Ore now.
 
gfresh said:
Another: ICN - http://www.iconenergy.com

I hold a good holding in MMX, SDL, and POL, and banking heavily on the sector - so hope at least one or two of them do nicely in the next 6-12 months!

MMX is my leader at the moment.. I think that has very solid gains ahead, risk is getting less and less.
Click to expand...


Thanks gfresh, yep on the list now. :cool:

cheers
 
Great thread

Any good links to "iron ore outlook reports" where they usually give a run down of the sector and forecast supply/demand equation like other metals? These usually make good background reading.

I'm currently looking for 2 or 3 quality ones for the bottom of the drawer.

For long term holders, I think the following will be key

-location, location, location (transport is more important for iron ore than other metals as it makes up a significant part of the cost)
-size (to justify the capex and spread the cost base)
-quality of deposit
-management


Cheers :D
 
Yes, great thread...i've noticed a few Iron Co. breaking out or looking like breaking out soon too.

Heres one i posted on another thread...still waiting for it though.

Cheers,
 

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jet328 said:
Great thread

Any good links to "iron ore outlook reports" where they usually give a run down of the sector and forecast supply/demand equation like other metals? These usually make good background reading.

I'm currently looking for 2 or 3 quality ones for the bottom of the drawer.

For long term holders, I think the following will be key

-location, location, location (transport is more important for iron ore than other metals as it makes up a significant part of the cost)
-size (to justify the capex and spread the cost base)
-quality of deposit
-management


Cheers :D
Click to expand...

Jet,

Thanks for yr support. Agree 100% on yr 4 key points. I might start to collate some data on these stocks on the first 3 points and post as soon as I ready, so that comparsion of stocks in this sector will be a bit easier, but now I have many more to do DD on. :D

Cheers

YOUNG_TRADER said:
Hey Damuz,

Nice thread,

Iron Ore certainly appears to be the new Uranium
Click to expand...

Tks YT,

Appreciated yr sentiment.

Yes, agreee if Iron Ore gets as hot as U was some of these plays could rocket and make Iron Ore the mineral of 2007-2008.

YT, yr research on some of these stocks is right out of the top draw, keep it up.

Cheers
Muzz
 
CanOz said:
Yes, great thread...i've noticed a few Iron Co. breaking out or looking like breaking out soon too.

Heres one i posted on another thread...still waiting for it though.

Cheers,
Click to expand...

CanOz,

I think not only has MGX has been helped by the sector, but going into the ASX200, starts to bring it onto the radar of the big fund managers, who have to track the ASX200.

Thus, this brings in more money, and keeps driving the price higher. It is sort of like a rolling stone, onces it starts it is v.hard to stop.

Cheers
Muzz
 
Any views on Magnetite compared with Haematite ores?

I found this snippet in a BBY report


BBY report said:
Over the past 12 months emerging magnetite concentrate / pellet companies have underperformed
significantly the emerging hematite producers including FMG, MMX and MIS which have seen price
increases >300%, whereas GBG’s share price has only increased by 19%. We are of the view this
underperformance is not justified given key considerations including (i) GBG has access to key road, rail
and port infrastructure (granted loading slots at Berth 5 and dedicated Berth 7 for the Karara project
development) giving the project a distinct advantage over emerging projects that require significant
expenditure on infrastructure (ii) after adjustments for mining waste:eek:re ratios of 0.5:1 and beneficiation
waste:eek:re ratio of 2.7:1 the Karara 1,300Mt magnetite resource is equivalent to a large 500Mt @ 69%Fe
hematite deposit with a strip ratio of 3.2:1(iii) that magnetite concentrate / pellets have excellent exothermic
characteristics and generally lower impurities ideal for steel making (iv) prices received for concentrate and
pellets are at significant premiums to fines and lump ore respectively (v) better processing environmental
behavioural characteristics when compared to iron ore fines sintering and (vi) that GBG by mid 2008 plans
to be a profitable small-medium sized hematite ore producer. The key disadvantages of magnetite projects
are (a) higher capital intensity per unit of output (b) higher processing costs per unit of output and (c)
projects are not scaleable without significant new capital expenditure. On average pellets cost 2-3 times
more than equivalent hematite production, but prices received are 10% and 40% higher for lump and fine
ore respectively and generally 2-5% higher iron grade.
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