Hi buffettGood reasoned post, & I know the post u are referring...

Hi buffett

Good reasoned post, & I know the post u are referring to re juniors becoming successful after picking up relinquished Iron Ore ground from BHP etc.

It was in a reply to me on the GXY thread from showman, it's invaluable advice & hopefully someone reading here will get value from it (I hold GXY, but am not trying to cross-promote...it's the overall message that is imporant here). cheers Marny




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showman
Post #: 2365278
In Reply to msg: #2365257
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Sentiment: Buy
Disclosure: Stock Held
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Hi Marny,

Yep, you got the good oil... they had 15%, wasn't sure how it all unfolded.

I think what GXY shareholders should get a great deal of comfort in is that anywhere BHP has drilled in the past, or mined, and has dropped that licence has proven to be very profitable for other companies.

For example, I was the CFO of Portman from 2002 - 2005 until Cleveland Cliffs took us over. When I joined Portman they had a market cap of around $150m..... less that PLV today! Their two assets were two closed BHP mines... Koolyanobbing and Cockatoo Island. In 2005 we sold Portman to Cleveland Cliffs at $3.85/share, or $700m... an unheard of price for a comapny with 2 reject projects. Cleveland Cliffs only got about 80% and therefore Portman is still listed at about $11.50!!

My point is, and I'll share it here and hope a few of you make some money out of it.... BHP have left some treasures behind because when they dropped them we were in a totally different market (ie: Koolyanobbing was no longer profitable..today it is Portmans flagship... Portman is valued at what... $2billion?). BHP had to relinguish some property around Mining Area C... they relinquished the least prospective area at the time.... Today this is an area, IMHO, that is worth a great deal. UMC picked it up. I await their latest drilling results with a great deal of interest.

BHP closed Koolan Island in 1993. I worked on Koolan 1988-89. BHP closed cause it was no longer profitable... Aztec picked it up...taken over by MGX..... what is MGX worth???.... and what is it's flagship asset??

BHP dropped Cockatoo Island because it ran out of ore... Portman picked it up.... built a seawall and has exported for 6 years at great profit margins.


BHP had Irvine Island, did sampling up to 67.6%Fe, low impurities, recommended drilling. Couldn't get agreement with the native title claimants.... dropped it cause it was too hard even though they recognised there were many millions of tonnes on the island. Portman picked it up... had they same issue with the native title claimants.... Pluton offered JV 50/50 if they could get native title.... rest is history.

What I am trying to say in my usual very long winded way is that I will:.........


.....Always be intersted in results produced by a company that has land previously owned by BHP.....

History has proved that it is very profitable to follow companies that step into BHP shoes.


You now have my receipe to success in picking iron stocks to back. DYOR but I haven't been many that have failed, I have seen a few become multi billion dollar companies.