Dwarves and Middle Earth, page-8

plenty of risk with this stock but happy to have another punt at this level
65% bf Pellet premiums are sitting around 32$ on the mb iron ore index.
i feel pellets are a good exposure to trump and Europe mills firing back up, china wants to get rid of the steel glut so no more flooding cheap steel exports. This will divert pellets that would normally go to china from Brazil etc. samarco reopening is another uncertainty however
Grr is plenty of company risk obviously - so much being spent on pre stripping, no idea of mine plan if anyone has details? I'm going off pictures of the mine lol? the ore body looks like it is 50m from surface then is several times this in depth.

If They get to high grade ore again and don't have to spend too much more for mine development this can make good margins c1 back to 70's in Aud and pellets at 85-95 in usd (which implys 62% index 55-65) they can pay div still. But obviously exposed greatly to any upside.(much safer then other junky juniors) The bear case also possible so this stock can go lower, if you worry a lot about losing money this isn't the stock for you. Risk/reward is there for me here