Iron Awe - how and why HIO could 100X, page-3

Thanks Glenn, the high quality HIO posts on Hotcopper by many has never really moved he dial and mine are no different.

The swing to high grade magnetite has been so rapid and pronounced just in the past few months that the market has yet to find a way to value it. Its so rare it may be done at the takeoff agreement stage depending on what its worth to them for stable supply. There is a $60 premium to 65% Fe hematite pellets vs 65% fines. Add + $15 for each 2.5% purity above benchmark so thats $30 for 70%, one would think that at least another $60 would apply to 70% magnetite pellets vs 65% hematite pellets making a total of ~$235 for HIO pellets and at least $130 for Supergrade (R) before converting to AUD$.

The high grade magnetite price could in reality dissasocite from hematite benchmark and start tracking scrap which will be in ever tighter supply simply because thats how EAF mills will cost compare DRI/Scrap feedstocks.

The 1st year net earnings could well be greater than the mine cost if they produce 10MT of each!

The likes of Twiggy, Gina, Mitsui and many others in the market do and must be drooling at the tasty little meal the current HIO share price offers. Some could well be planning how to pounce, with a wide open share register they may well go for the 100% jugular to ensure a quick kill. For these big boys (& gals, sorry Gina) the pathetic $ required would probably come just out of petty cash.