First AGO bought Warwick Resources (WRK), then it was Aurox Resources (AXO), now Giralia Resources (GIR).
Who's next? I think FerrAus (FRS).
Atlas Iron has an ambition to become Australia's 4th largest iron ore producer after RIO, BHP, and FMG. Thus its acquisition wouldn't stop at GIR.
Why FRS? Wah Nam is trying to eat up FRS and BRM. FRS's tenements are next to AGO's southeast Pilbara tenements (formerly Warwick Resources). So this supports AGO's southeast Pilbara strategy. FRS is a member of NWIOA, thus it has port access and capacity, so an AGO controlled FRS, AGO will have a bigger port allocation in Port Hedland.
Another thing is BCI. BCI is now over $300m mkt cap, and raised capital recently. Its one mine operation in Nullagine is good, but it will need to expand to other mines to prove itself up as true growing iron ore miner. BCI is a former member of NWIOA and JV partner with FMG. Thus BCI in order to growth could potentially target FRS, if not can pursue a West Pilbara strategy like eyeing out on AON or RHI.
FRS Price at posting:
90.0¢ Sentiment: Buy Disclosure: Not Held
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