umc trading stats for today, page-26

Hi Shandybaby,

Mention magnetite on this thread and you’re likely to get the big slam dunk. I have not yet worked out why some Chinese steel makers have fallen in love with magnetite in the Mt Gibson region.

Golden Bell Enterprises, which have recently bought into ACS, have now increased their holdings to 10%. I'm not sure who Golden Bell is, but I suspect that they represent the Pioneer Metals Group. If so, then it would not surprise me to see them increase their holdings to just shy of 20%.

The biggest issue I have with magnetite is the high capex. Mind you, if ACS could successfully beneficiate its ore by the simple process of magnetic separation, they may very well be able to control capex to a certain degree.

At a fully diluted market cap of $38m, ACS does look appealing, especially when one considers that a Chinese steel maker is more than sniffing around. However, I'm yet to be convinced to invest in magnetite whilst there are still ample hematite players around which can offer far better leverage. I'm certainly not suggesting you don't invest in ACS, but I will tell you that I'd rather put a few bucks on a hematite player, like PLV, WRK or ROY. In fact I bought 100k of WRK early last week and yes, I do hold PLV and ROY as well.