ALK (ASM) paid massive overs for the land surrounding the Toongi Rare Earth deposit and it has probably in value already surpassed the inflated prices they paid 5 or so years ago when you take into account current land values. It is fast becoming uneconomic to farm with crops/livestock as inflated rural land prices are affecting the rate of return on investment now. Mind you, ASM would be noticing the on farm income generated from the farms they "locked up" would be raising managements eyebrows at present. Inflation with food costs could go through the roof in the not to distant future? Not so far away another holding bordering IPT ground is coming up and the per acre prices being quoted are very high and will be a real interesting watch. I think I will log in to watch the online auctions to gauge interest and see if the price paid surpasses the economic reality. It is becoming a little like the high Sydney prices in real estate, it is not the income you can derive from a shrinking rate of return, it is becoming more so now income covering costs being replaced by prospective capital gains? I would imagine any prudent explorers would snap what they could because a few years down the track the price may well have tripled or quadrupled anyway, so they win on two counts, lose on none????
MAG Price at posting:
9.2¢ Sentiment: Hold Disclosure: Held
