IOH - Iron Ore Holdings

[Moonshine]

After a spectacular debut yesterday (issue price of 20c, closed at 40c), a little correction for this prospective Iron Ore stock this morning... currently at 36c.

Still,... the buy side is stacked with larger orders, and the sell side is kinda thin!

IOH's tenements look very interesting as they are all very close to Massive proven reserves in the shape of BHP and RIO.

Definately one to watch as they get their act together and start drilling.

[Moonshine]

OK... from a trading range of 40c since my last post, this share closed today at 82c today amid strong buying from current holders...

No news released yet, but surely this astronomic rise can't keep going unabated??

[Moonshine]

If anyone can explain why IOH is NOW trading at $1.15, up almost 50% in the last 2 weeks, and up 600% since issue 3 months ago?

I am at a loss... and the speeding ticket issued on the 9/08/2005 yielded nothing from the company itself?

Cheers,

Moonshine

[corporateraider]

It surprises me that this stock has passed under the radar of most. It has a resource similar in size to GIR, but has a much lower market capitalisation. I will write more as time permits, but I see real legs for the share price.

Disc: Have a good number but would love more

[corporateraider]

The company has a JORC resource of 300 Mt and has significant upgrades due for two of their tenements in this quarter.

For the last 8 months RIO had an exclusive agreement to buy the largest of the company's resouces at Iron Valley. As it became less likely that anything would happen the share price fell away.

Concurrently RIO was negotiating with IOH to buy ore from Phils Creek. The time frame on that has also passed, but negotiations still continue. A successful outcome of these negotiations would provide cashflow that would help the company develop and probably an immediate boost to the share price.

Even if this doesn't happen IOH has a very significant resource in the Pilbara with a very strong indication of more to come.

Disc: Hold both GIR and IOH and they seem equally exciting prospects..

[corporateraider]

The more that you look at the numbers the better this looks.

In my last post I said 300MT - THE NUMBER IS ACTUALLY 400MT.

The market cap is currently only 220 mill.

There are only 135mill shares and 4.7mill options most of which are currently being exercised and making cash available for exploration.

Cash on hand is currently around 17mill.

The share price seems well supported at current levels.

I see big, big appreciation is possible for this share price before the end of the year.

And just as another point of interest, Kerry Stokes, one of Oz's richest men holds 51% of the company.

If you thought CFE was a great iron ore play (and I don't) have a look at this one -on every measurable aspect it stacks up better!

[corporateraider]

The price continues to be well supported at current levels.

The company has a wide range of projects. There are with current JORC resource"
Iron Valley 240
Phils Creek 62
Buckland Hill 48
Boundary 26
Fingers 23

Two more targets have been identified at Bucklands.
At Boundary there will be more drilling by years end.
At Fingers the current resource is the result of limited drilling and more drilling is due shortly.

All projects are close to current infrastructure.

[corporateraider]

A victory for the Coalition will do great things for the iron ore sector. Fingers crossed!

I believe that a Labour victory is already factored into share prices.

[corporateraider]

Another very significant resource upgrade today so that the JORC resource now stands at 463MT.
And yet the market cap is only 186M!!!!
This stock is unloved by the market, but on fundamentals is amazingly cheap. There are other stocks with larger resources (FMS) that are cheaper, but this company is starting to be re-rated.
It seems only a matter of time for IOH.

Note that another significant upgrade is du in the Eastern Area.

[corporateraider]

The Ocean Equities latest report on the IOH website is well worth a read. It talks of IOH's significantly expanding resource in the Pilbara, so that very rapidly IOH will overtake AQA as the fifth largest resource.
With the good grades that it has it could well be the subject of takeover, or it seems that infrastrure options may be available to allow production.
It seems no one wants to bid until the future regarding the resource tax is determined.