Value Microcaps Junior Miners

[HokieHead]

MMSDF $0.08 Glencore Deal/Iron Ore prices set to skyrocket..

Iron Ore Spot prices:
December: $67.82
January: $74.30
February: $80.08
Friday close: $85.89

https://www.marketindex.com.au/iron-ore

That’s already a 25% increase in 3 months and it’s only going higher as supply issues can’t keep up with demand. Two recent issues here that will continue to take the price higher:

BHP news today:

https://www.google.com/amp/s/amp.smh.com.au/business/the-economy/red-alert-bhp-shuts-iron-ore-port-ahead-of-cyclone-veronica-20190324-p5171x.html

Vale dam break:

https://www.google.com/amp/s/seekingalpha.com/amp/news/3431201-iron-ore-powers-highest-since-2014-14-percent-since-vale-dam-disaster

So MMSDF places a $100/ton 10 year estimate and they are halted and told it’s too aggressive? $100 may be conservative for this year only, it’s only going higher as the resource becomes more scarce.

Glencore, basically one of the largest natural resource companies in the world signs on to a life of mine with MMSDF:

Glencore secures life-of-mine of the project with commercial terms for approximately 4 million tonnes per annum average for the first 10 years, with the option to extend for a following 10 years for all tonnes of future Lake Giles iron ore production.

Simple math using say only a $75 per ton average for 10 years (lowballed):

4m tons X $75/ton = $300m a year revenues

$300m x 10 years = $3 billion in revenues.

Current valuation:
$0.08 x 300m OS = $24 million market cap

And this doesn’t include any other of MMSDFs projects. Insane trading for a $24 million market cap when revenues in upcoming years will be in the $300 million plus range.

Iron ore shortages isn't going away, Glencore sees the value in Macarthur’s mine, I see a huge undervaluation in the stock price.

Company will be in the dollars by summer.