Potentially huge iron ore play

Hi all, I have been a holder of PF1 for a while but I do not often post. Lets get some discussion going about the potential for iron ore in the current market and specifically the Hamersley Iron Ore Project.With the recent price action it looks like the market may be starting to realize some of the potential for a huge iron ore play especially with the current record spot prices.

In April iron ore exceeded the previous 2011 high of 188 USD/metric ton. It is now pushing even higher in May. The driver for surging iron ore prices seems to be an increase in steel demand out of china. To help spur economic growth post covid, the Chinese government has increased spending on infrastructure. This has resulted in Chinese demand for crude steel soaring to meet the construction industries appetite.

The chart below shows the 5 year historical production levels of steel in china

https://tradingeconomics.com/china/steel-production

While there should be some expectation of softening of iron ore prices once China eases up on demand, pricing of Iron ore is obviously red hot at the moment for a large iron ore play.

Currently PF1 holds an interest in the Hamersley Iron Ore Project through an unincorporated joint venture (Winmar Exploration Joint venture, WEJV). WEJV consists of 70% Pathfinder ownership and 30% Lockett Fe PTY Ltd (a wholly owned subsidiary of ASX:CAZ). The mining lease is neighboring Fortescues Solomon project. Current resource estimates put us at 42.6Mt 55.2% Fe indicated and 300.6Mt 54.5 Fe inferred ((DID)^3 + (CID)^2).


As stated in the Hamersley resource estimate announcement on the 23/02/21, "the mineralisation remains open in several directions, particularly to the north".With new drilling to expand the current boundaries, there is potential to increase the resource estimate from its current 343.2Mt 54.5%Fe (total mineral resource).While speculative, a trivial amount of drilling could greatly increase the size of our deposit. A deposit that not only exists in the center of the Iron ore capital of the world but also at a time when Iron Ore spot prices are hitting record highs.

I wanted to kick off discussion with a question. Where does this put PF1, being an unincorporated joint venture how do we get value from this project under the current agreement?