JMS possibly the most underated iron ore stock going forward.
When JMS was bought to my attention a couple of days ago, I was very keen on the Brockman Iron Ore Tennements due to the fact they were so close too the currently operating RIO Brockman Iron Ore Mines and on top of that they have had some very high grade surface samples which indicate that the iron ore mineralisation is continuing right through into JMS's land holdings.
What really changed the game for JMS is what was announced at the AGM.
1. The previous management was turfed out for lack of performance (don't be fooled here people if it wasn't for the previous management JMS would be a much highly valued company, now they are out of the way watch for a serious re-rating of the stock.
2. They announced that the drilling of the Brockman iron ore tennement had begun with results due before christmas (as YT has pointed out they have the potential to be sitting on up to 630 mt of high grade hematite iron ore)
3. They stated they were in advanced discussions for a major JV covering one of their major project which is close to completion (as they are smack bang in iron ore elephant country it leaves RIO,FMG and the Chinese as likely suiters.)
4. Also they stated their search for a new CEO yielded a top notch candidate who has vast iron ore/nickel experience, this could yield a reaction similar to the appointment of new management at YML.
5. They appointed a new director who is a Chinese national with vast contacts back in his homeland. (this is a massive bonus in assisting with getting the chinese money machine onboard.)
Now a closer look at possibly the best short term iron ore play
Reasons why to invest in JMS going forward
1. With the drilling underway at the Brockman Iron Ore project expect some serious shareprice action as we head towards the results remember as YT pointed out there is a maximum potential of 630 mt of high grade iron ore, just look what is happening with IRM,BMY and their tennements are no where near as good as Brockman
2. With the old management now gone expect a re-rating as they were largely responsible for the shareprice underperformance (they have always had very good landholdings it was just management inaction that cost the shareprice dearly)
3. Don't forget Brockman Iron Ore is sandwiched between RIO's operating mines and less than 20km from FMG latest 1 billion tonne discovery (I nearly fell off my chair at 2:30 Friday morning when I discovered that) don't discount the nearology effect on JMS's shares.
4. The prospect of a high profile experienced CEO to take the helm shortly
5. The lure of an upcoming major JV with either RIO,FMG,Chinese
6. The fact they are one of the few smaller iron ore prospects that acually have a JORC resource (Mt Mason)
7. The quality landholdings that JMS has amassed will lead to some very interesting targets going forward with several targets already recording 60% plus FE hits. With exploration targets such as Brockman, Mt Mason, Mt Ida, Shay Gap.
8. Rumours that the Talbot group is assuming control of the company (remember Talbot is the current largest shareholder, he certainly knows how to make money in the iron ore space and doesn't back a loser)
Summary
Massive upside in the Brockman Iron Ore Tennement (targeting 630 mt of High Grade Iron Ore)
The market does not know the full potential of Brockman and infact they are currently drilling with results due before Christmas.
Old management gone, expect substantial re-rating due to new management getting the company out there moving forward.
Possible major JV, Talbot Group Control
Nearology smack bang in the middle of elephant iron ore country with confirmed high grade samples.
