jorc out , page-23

I took some profits this morning as I have changed my view slightly on YML.

My main concern now is the depth of the orebody - high stripping ratio - combined with the fact that it needs to be upgraded on site. This is going to cut into the bottom line, particularly as it is not free-digging up there - they are going to have to blast down to the orebody.

That is not to say that it is uneconomic. It most certainly is at current prices. However they will not be pulling BHP type margins (>50%) on their iron ore.

The new iron ore body discovered was a little disappointing too in terms of it's grades and depth.

Despite this YML still represents good value. I look forward to hearing more about it's other tenements in the Pilbarra.