The market works in mysterious way, it presents incredible buying opportunities however.
Lets compare POL with another iron junior, MDX, both with main immediate focus in the Yigarn region WA.
POL
Market cap: approx $55mill
Cash at hand: approx $11mill
JORC resources: 30mt@58% fe
Non-jorc resources: established by BHP in late 60's: 60mt@58% fe (Bungalbin)
Other targets: 250mt+ CID targets next door to FMS/FMG, independentely accesses by expert in that style and location of minerlisation, same guy that assessed FMS's targets.
10mt CID at Poondano, 30Km from Port Hedland.
Mayfield-potentially large high quality magnetite, with some DSO areas.
Extensive prospective tenements in pilbara and yilgarn regions.
Positives:
-Malaysian steel maker as major shareholder, offtake option likely.
-well advanced, 2 PFS's due anyday, rail/port negotiations well advanced.
-major expansion of resources likely (C & W tenements), Rio rail running through this tenement.
-highly credentialled management team with vast experience in getting projects to mine stage.
-Ian Buchhorn (director) has made multiple on-market and rights issue purchases, 1mill+ shares bought above current price, confidence in the company? You bet.
-key targets, Carina and Poondano due to commence mining in 2010, similar timeframe to other juniors with market caps many multiples of POL.
Negatives:
-Bungalbin requires more enviro hoops to be cleared, delay in production.
MDX
Market cap: approx. $42mill
Cash at hand: approx. $11mill
Jorc resources: None
Non-jorc resources: None
Other targets: 90-100mt Mount Forrest Area, based on variable rock samples, better chips 57-63% fe. Other regional rock chip based targets.
Negatives:
-no certainty of DSO orebody beneath rock chip samples (other regional players like TRH, and even POL, have both had excellent surface rock chips combined with mapping targets, and they have turned out duds!).
-not one drill has been sunk, delays continuing due to heritage issues, access/permits not certain.
-grass roots, assume minimum 3years+ to production commencement provided they prove up something? PFS's, rail/port agreements not even in the picture.
Positives:
At this price, I fail to see any.
Interested to hear others views?
I've undoubetly missed many other points.
I know which one i'd rather be holding/buying right now.
cheers.
POL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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