Their sole asset is an 80% interest in the Oyabi Iron Ore...

Their sole asset is an 80% interest in the Oyabi Iron Ore Project in the Republic of Congo (ROC), or Congo Brazzaville as it is commonly known to differentiate it from the DRC.

Apparently the ROC is apparently a great place to do business. It has been a stable democracy for a number of years now & they are trying to diversify their economy out of oil & gas into other commodities such as iron ore, phosphate, uranium etc. The government is very supportive of this and there are a number of "majors" already operating there.

On the iron ore front, you have companies such as EQX, Zanaga (with Xstrata), SDL,Core (with Severstal & Glencore), WGO and African Iron which was already taken over by Exxaro. As you can see, not a bad list of participants. If I have forgotten 1 or 2, pls forgive me.

Anyhow, what will be of great interest to me is going to be the results of the helimag survey. I'm actually surprised that they're not out yet as it was performed prior to their listing (according to the prospectus) & how long does it take to analyse this data already? The only rational conclusion I can come to is that they will also release an exploration target with it & that is what is taking so long.

I don't ring the company & ask questions like that as I find it best, & most profitable, to invest on the back of pure, unadulterated analysis without a company secretary or director peeing in my ear.

If the helimag results & possible exploration target were to generate good results i.e. a nice sized exploration target, would an EV of $10m i.e. 50c be out of the question? I think not.

Similarly, at some stage I suspect the company will want to raise more money for more aggressive exploration. Obviously, they would like to do that at as high a price as possible. Of course, I have no idea how much they want to raise & at what price, but the higher the better.

Anyhow, I think EQH has a hell of a lot going for it - a presumably good asset in an excellent locale with proven iron ore occurrences, a well connected team that has many years of experience operation in ROC, a tight capital structure and news in the pipeline.

At the end of the day though, the stock is "talking". In short, I still think EQH is cheap & a some good news flow could in the medium term see it with a dollar sign in front of it.