15 to 25 bagger hemitite fe producer by 2010

DMM is imo the cheapest near term ironore producer on the ASX.

They have recently released a resource of 135mt hemitite and 800mt magnetite.

At $150pt for hemitite and $80pt magnetite, you do the maths and work out the resource.


Best thing about it is:

1) NEAR TERM PRODUCER

The company expect to be mining and selling iron ore in 2yrs.

Cash flow and profitability in 2 years.

Other comparably capped ironore companies are 10yrs away.

2 years!!!!


2) EXISTING INFRASTRUCTURE

A 3mtpa existing rail line is on site.

This means they can have a cheap and easy initial production for the first few years and be higly profitable early. They will use the early profits from 2010 to filter into infrasrucuture upgrates, and expand the rail to 10mtpa.


At 10mtpa, this will be a $2bn company


Selling for ~$50mn mkt cap today!