I thought the CHM claim was over Weld Range as well. Not that it...

I thought the CHM claim was over Weld Range as well. Not that it matters because the claim has not gone anywhere much.

Neil, I've enjoyed reading your analysis of MMX, but in your last post I think you are not giving enough credit for the value of Jack Hills.

I have heard that internally, MMX is hoping for a much, much larger deposit than the quoted target of 380mt. MMX has maintained a disciplined drilling strategy where they are methodically going through the ore body and avoiding the temptation to simply drill the best bits first. They are doing this because they know that they have to drill the whole thing eventually, so why waste money on a disorganised strategy where they have to move the drill rigs around inefficiently to get the best targets first....they are not concerned about pleasing the market from one month to the next but in delivering returns to shareholders.

As the RM report states, approximately 70% of the ore body is yet to be drilled, and people are licking their lips in anticipation of future Jack Hills areas to be drilled such as North East ridge.

The Merrill Lynch valuation on MMX ignored value for infrastructure and Weld Range...they had an undiscounted value of $13 for Jack Hills alone, which equates to around $4.5b (very rough calculation).

Admittedly, Merrills placed a more conservative valuation of $7 due to discount rate of 15% p.a. due to start-up risks and importantly, the risk that MMX might not prove up the 380mt target.

Now - it looks to me like they'll go well beyond the ore target. And Merrill Lynch report was also based on conservative iron price assumptions...since then the Brazilian contract price is up 70% with hopes for Australian price to rise even further beyond that. There's also been a lot more major building projects announced by governments around the world that suggest iron demand for next 10 years or more is going to be mind boggling.

I am a pretty large holder in MMX and my main concern is that the company will be allowed to be taken over/merged with MIS or SinoSTEAL at too low a price. Its possible that Sino might get MIS at far too cheap a price due to major shareholders happy to take a quick buck in the short term. Fortunately, it appears that MMX management is aware of the value in their company and hold significant stakes...their strategy appears to be focused on the long term which gives me a great deal of comfort.

Holders of MMX should forget about PERCENTAGE returns and start thinking about what MULTIPLE the share price will be from current levels.