Hi Buffet, I only had a quick read of UMC and there was nothing...

Hi Buffet,

I only had a quick read of UMC and there was nothing that suggests that UMC should be capitalised at what it is (just under $200m fully diluted!).

Sure there were some good hits there, but also a lot of blanks also. It always pays to have a close look at all the drill results, drill spacings, location of drill holes to see if there is continuity in the mineralisation that would allow a resource. UMC's results are a bit uncertain in this regard with a lot of misses in between some good hits.

I cannot justify a market cap of $200m for what they have. I have posted previously about their bauxite. The bauxite results they have got so far are pretty ordinary and I have commented that they will need to get the Mitchell Plateau resource off RIO and Partners in order to have any chance of a alumina business. That is a long shot.

Given that their market cap is so high and based more on potential than concrete results it increases the risk of investing. I am not saying UMC will not find large iron ore resources in future or pull off the MP deal. Its just that the risk profile doesn't suit me.

Sorry to talk about UMC on the YML thread like this.