Some poor soul has jumped this morning to take the GEN price down to 3.5. Do they know something that I dont? I do know that according to an AFR article published yesterday this BofA warning: Bank of America warns that continued strong iron ore production out of Australia and Brazil, and weak demand from China, could push the price of iron ore down towards $US75 a tonne in 2025 as global oversupply edges towards 190 million tonnes next year, or about 8 per cent of global production. That's reason enough to sell isn't it? In the PFS released back there then in 2022 the AME forecast of iron prices for the Baniaka LOM was stated as: The AME Forecast ranged from US$87 per dmt in 2024 and US$108 per dmt in 2035, averaging US$97 per dmt over that period. So that fancy LOM NPV of A$600m ceases to be relevant! Is an EV of $20m [ at 3.5 cents] too generous then? Maybe Baniaka will have to be assessed on its strategic value to a Chinese steel mill. The target resource at Baniaka is 800Mt . The market is today valuing each of those tonnes at 2.5 cents .
GEN Price at posting:
3.9¢ Sentiment: None Disclosure: Not Held
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