Why would you put your cash into start up zinc, nickel, copper...

Why would you put your cash into start up zinc, nickel, copper explorers....when you read stories like this, just out, concerning iron ore.

YML are the only exploration company right now who have significant iron ore deposits in the Plibara (where they can leverage off existing road/rail.)

This is a company worth right now, probably three time their present market cap.

Quick NPV .....lets just work on an iron ore price rise of 30%, next year.......and flat margins for 10 years.

3MTPA production and start up costs of $50 million.....10 year operation.

Earnings after tax in first year of operation would be $60 million......NPV after tax @8% in first year alone of some $350 million. Ahh thats actually 6 times its present value.




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http://www.busrep.co.za/index.php?fSectionId=567&fArticleId=4033500


Iron ore shortage spells record contract price hikes
September 14, 2007

By Justin Brown

Johannesburg - The international market for iron ore is the "tightest it has ever been" and contract prices could rise next year due to Chinese demand for steel input and a slower-than-expected supply from Brazil and Australia.

Patrick Cleary, a London-based CRU analyst, said it was "not inconceivable" that next year's contract price increase would "approach or better" the record annual iron ore increase of 71 percent achieved in April 2005.

Iron ore contract prices are negotiated every year from October by the world's three largest iron ore producers - Brazil's Companhia Vale do Rio Doce, Rio Tinto and BHP Billiton - and the largest steel producers such as ArcelorMittal and China's BaoSteel.

Cleary said that the spot price of Brazilian iron ore delivered into China was quoted at about $150 (R1 080) a ton, about 25 percent or $30 a ton higher than the comparative contract price.

However, he said that the spot price of iron ore was "very volatile at the moment".

"The shortage of iron ore is causing the price to be bid up," Cleary said.

On the other hand, he said there were concerns about the demand outlook given the uncertainty in the global financial system, especially the difficulties being experienced in the US mortgage market.

Bloomberg news agency yesterday quoted Marius Kloppers, incoming BHP Billiton chief executive, as saying that the iron ore market was "very tight".