jms moving forward in partnership

JMS IMO is guaranteed to go places. And with world demand for steel again on the up, as evidenced by rising prices, the high quality resource that JMS holds in the Central Yilgarn, WA, will be the envy of global producers of iron and steel.

Posco’s recent purchase of a 17% stake in JMS, joining Pallinghurst and Red Rock Resources (RRR) in JMS, brings the aggregate partnership up to 53%. As part of the deal, Posco has already agreed to an “arms-length offtake agreement” to buy up to 50% of JMS iron ore production.

With these strategic partners and major investors in Jupiter, the company has strong leadership and expertise, and is in a position to capitalise on acquisition and growth opportunities which are aplenty in the Central Yilgarn. Moreover, JMS also has cash aplenty. Posco’s payment of $7.8m for the stake (to be approved by an upcoming board meeting) will increase JMS cash on hand to more than $14.5m.

My view is that an astute company like Posco (2nd largest steel producer in the world – according to Wikipaedia) does not make fickle investments. It is reported that they decided JMS iron ore to be of a superior quality and it appears they genuinely want it. JMS is tentatively expecting to export around 5mt annually from the Central Yilgarn within three years.

With a set up like this, it won’t take long for this stock to take off, especially when the current exploration and development is completed.
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