africa's 'most exciting' new iron ore project , page-2

Definately.

At 2.5 cents a share Tawana Resources (TAW) has a market cap of $37 million, which is possibly just a thumb print to Rio Tinto’s sky scraper market cap of $26.8 billion. The thing that it has in its favour over Rio Tinto is leverage. If Tawana gets it right - or even partly gets it right - its shareholders should expect a market cap many multiples of where it is now. If it doesn’t, Tawana could cease to exist.

One shareholder who is a big believer is Caledonia Resources Fund portfolio manager Chris Baker. He says, “I think (Tawana’s) iron ore body is tremendous. Even with the iron ore price under $US100 a tonne, I don’t think there is an awful lot of downside. The beauty is its low cost from a capital and operating perspective.”