interesting observation on the price of Iron and it’s direct...

interesting observation on the price of Iron and it’s direct relationship to China reopening. With hints of China reopening price rose 20%. Despite the latest set back, forecasts (CITI)are that China will open second half of 2023. People who say the price of iron doesn’t affect HIO obviously are unaware about how funding works in regards to transforming from an explorer to a miner. There are many cogs in the wheel, but the financial prospects of getting funding will surely be improved with them, as will the terms of any potential JV. As much as it has been short term pain for shareholders the long term prospects of the company in my opinion are still very strong. Far better to release the BFS under optimal conditions to increase the chance of funding. The letters of intent some are saying mean nothing, but what it does show is there is a demand for the product. Running the financials with an increasing Iron ore price shows a decreasing time towards profitability. It is for these reasons that any large potential Joint venture might be looking at our market cap (and those around us) and see the massive potential ROI. When analysed it gets more concerning when companies known to jump in to undervalued stocks start to mop up shares. These companies are attracted to companies with proven resource or in different sectors profitability. My fear is this is the big danger with the pending credit raise. Raise happens at a discount, shares sold down to these companies who build a strong position ready to make a healthy profit at take over. For an example to those researching look into the take over at PYG at $1 a share when dropping like a rock to 30cents. At the moment is one of 50 different ways this could pan out. But for those doing research, may I suggests looking at historical capital expenditure after a recession, and the subsequent demand for iron. All opinion and not advice, and whatever way this pans out I believe we will have a lot of interesting developments over the short to medium term.

I find it interesting when long term holders are worried about a take over at 5x the current price. It shows a big disparity in where a lot of people believe the value of this company will be if we get to production, and current valuation with macro fears and current uncertainty in commodities prices.