I have said quite a bit about CLE.ASX Cyclone Metals. I won't rehash the fundamentals and the Vale partnership check the other thread for that. This is just a bit about the global green steel/high grade Iron Ore market opportunity as has been highlighted by a spate of articles in the media lately; plus the fierce lobbying going on in the US to have high grade iron ore added to the critical minerals list given its importance.
First Article:
https://www.copyright link/companies/mining/ivanhoe-lobbies-us-to-add-iron-ore-to-critical-minerals-list-20250520-p5m0o3
Second Article:
Third Article:
Now, what's the significance and how do these articles relate to Cyclone Metals? In summary:
The experts and journo's are starting to correctly point out that the global steel industry is undergoing a once-in-a-generation transformation.
The US is being urged to add high-grade iron ore to its critical minerals list – essential for battleships, green steel, wind turbines & EVs.
China is ditching low-grade Pilbara ore and turning to high-purity African and Brazilian sources to meet its clean steel goals.
Andrew Forrest warns the Pilbara faces becoming a “wasteland” as global demand shifts to ore that enables low-emission steelmaking.
Obviously this is where our baby comes in: Cyclone Metals (CLE.ASX) – a green iron leader ready to capitalise on this seismic shift. Check out all the boxes they've ticked and the work they've done to de-risk their monster project over the past few years since acquisition, as you'd be well aware.
✅ Highest-grade DR pellet feed globally
✅ Ultra-low impurities – ideal for green steel & EAFs
✅ Strategic partnership inked with iron ore giant VALE
✅ Fully funded to FID
✅ Massive 50+ year LOM project with potential $7B+ NPV (by my estimates - see my other thread for calculations).
✅ Staggering IRRs incoming – economic studies well underway.
While majors scramble to adjust, CLE is already aligned with what global steelmakers and Western governments want – clean, high-grade iron from non-China-aligned jurisdictions. They are situated in Canada.
With supply security, decarbonisation, and defence priorities colliding – CLE is in the right place, with the right ore, at the right time.
Two really important things I takeaway from the emergence of these articles and their supportive commentary:
- The world is waking up to the DR Pellet High Grade Iron Ore market opportunity primarily due to its use in EAF (electric arc furnace):.
- The fact CLE aren't mentioned once in any of these three articles over the past week; and Ivanhoe even goes as far as saying there are currently no high grade iron ore deposits in North America; tells me nobody is talking about CLE Cyclone Metals. And quite frankly, I love that!! When nobody is aware of what they're doing (Well Vale are aware, and they've rushed to chip in $120m to get it to FID in return for 75% of the project), that's classic sentiment during accumulation stage.
Vale's partnership combined with the very bullish price action on the chart tells me smart money is accumulating this whilst retail are being kept in the dark. It ran from 2c to 8c and then has retraced on lowering volume, and looks like it could be ready to go again. There are a lot of key levels to get back through but high grade iron ore awareness is building, so naturally it's only a matter of time before the lid comes off CLE.
Check out the current chart. Where do we honestly think it's going to go from here? Nothing is guaranteed in life but was this a rally on fumes? Absolutely not. There was real substance behind it, numbers and economics that are able to roughly guesstimated from verifiable figures, and of course the speculation and ultimate confirmation of the deal with a major partner tipping in $120m. Therefore, if the rally was warranted, and the price action is following the path all assets take in their zigs and zags upwards, what would that make the current valuation?
It is a screaming BUY on a stock that has retraced on lowering volume, to exactly where it should retrace in order to retain its status as a healthy trend. I personally think CLE are ready to rock and roll again soon.
DYOR
