re: more backround big story here maybe At first look.....and at least from information, other than what the company itself has told us.....would seem very different from all other would be iron ore companies.
I enjoy doing research, but at this stage, would have no interest whatsoever in UKD's prospects, other than their new iron ore licenses.
Here is why>>>
For a start.....one of their newly acquired licenses is 2 kilometres away from BHPs Mining Area c. BHP is ramping up production to 43 mtpa from this location. In "my" ballpark terms that would contibute about $1.5 billion or 8% to BHP's annual profits.
Gina Rhinehart Hope Downs 450 million ton resource is 15 kilometres to the east. Rio Tinto paid $250 million for a 50% stake some 12 months......on the basis that Rio shoulder most of the development costs. Views at the time, were a greenfield value of Hope Downs of just under $1 billion. UKD license is part of the same Marra Mamba foundation as Hope Downs and Mining Area C.
Stock price is nicely up.....but directors and other insiders are obviously not taking out a mortage on their house to buy stock....and after all Rhodes sold all these tenements to UKD for nett $1 million.
As much as anyhing, I am interested in the background as to why BHP.....for the sake of it did not seek to retain or secure, this small area (in the overall scheme of things) Marra Mamba, right next to their development.
Exciting stock it is.....always takes a month or two before news spreads and maybe some speculators enter the share register.
UKD
united kimberley diamonds nl
