The odd thing is that I don't consider UMC high risk.
The more I research the Iron Ore potential of the company.. the better it looks.
Sure, the bauxite is speculative and would make the iron ore look like chicken feed if they can pull it off..
All this company needs to be rerated is to be taken seriously by brokers. To do this they need a JORC resource, and that will take a few months.
If you don't think they can kick out at least 20-30Mt of Iron Ore on this first round of drilling you have rocks in your head.. . My private estimate is a lot higher than that.
Then take a look at their tenements ... ask yourself if you think these initial areas they are drilling are the only places where they are going to find outcropping or shallow iron ore. They only got these tenements last year.. and there should be many more years of drilling left to come.
I'd challenge anyone to do some research into the iron ore tenements and then explain to me why UMC is high risk.
Joel
UMC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
