True - but someone will be building a rail and they will have to assess the value of the deposits (indivudually or as a whole takeover). In this sense IOH SHOULD be able to tap into some of that hypothetical value, and if the company can continue as an entity and sell product to market via a JV then clearly more of that value gets unlocked. Both AQA and FMG have effectively stated that they want these deposits and have a plan to deal with them (even if it is a few years away at best - but what does IOH have that is any better?).
The reason I pose the question is an old FSB report (May or Jun 2011?) puts a 40pct risked value on Bungaroo South at around 420million - I just think that once Anketell is resolved then a fair chunk of the risk goes (maybe!) and the value of the deposit certainly goes up - as the rail issue is resolved even though the ownership of the rail is not IOH.
I think that there are more than a few cents in the Anketell announcement as it gets a rail solution to the market and starts generating more tangible options for IOH. Of course we could all be surprised by IOH coming up with an out of the blue, bold plan to build a rail spur to a RIO line or something!
IOH Price at posting:
$1.42 Sentiment: LT Buy Disclosure: Held
