Miningio/Columbia,They won't have 1 billion tonnes in July. Nor...

Miningio/Columbia,

They won't have 1 billion tonnes in July. Nor is 1billion tonnes important - Get that cr@p out of your head.

Miningio is correct - speculators who know jack about schitt saw 1.1Bt and thought it was amazing. I am not concerned about UMC rising in some speculative feeding frenzy. I am concerned about UMC digging up iron ore and making many millions of dollars of profit per year in the very near future. Ultimately a company which is producing profit can't be ignored by the market. On the other hand - a company with a whizz-bang announcement that omits important details will lose credibility.

Forget UMC including resources with a cut off of 45% in the JORC. Part of the JORC code says that the resource has to be potentially economically viable. JORC would include what they think they can dig up, and process by conventional methods that have been tried and tested over the past 50 years.

Even if Railway had "only" 50Mt it could support a mine lasting 10-20 years. How much do profit do you think they could make from an operation shipping just 1 million tonnes per year and selling into the spot market? A 100Mt requirement to be taken seriously is a myth.


As far as I'm concerned the person who needs to take them seriously is the end-user with the iron ore smelter. Who cares if 300 daytrading punters don't take them seriously. I'd rather have Paterson's and other institutions getting on board (Ocean Equities bought the options from Thundelarra).

What will see UMC taken seriously by customers is an Alumina content below 3.5%. Customers may like their product seeing as it is very similar to what RIO and BHP already ship. This means that smelters won't need to muck around trying to find the right way to process the ore.

If you have invested in UMC, you have invested in a company with directors commited to commencing mining operations as soon as they possibly can. Prices are high now, and set to rise next year. Where will the spot market be then? Mining by late next year was the date mentioned at the General Meeting.

The more boxes that UMC tick on the road to mining and selling their ore, the more shares I will buy.


Joel