Any valuation of each 'project' has to start with an iron ore price assumption, and a time line, neither of which I have. I think that there are just too many variables still out there to do it yet.
Anyway - Mt Dempster - huge potential (over a billion tonnes of Fe - not ore). Close to existing infrastructure, however no indication yet what the LOI pcts, Phos pcts, etc are. Even at only 10/tonneFe net profit that deposit is worth a lot to whoever can get it to production (RIO hello?), half a billion in net cash/year for 20 years? Maitland River - some possible heritage site issues (?) and a smaller deposit, but close to Sino who have a clear expansion in mind once they are up and running, so again good potential. Buckland Hills - a JV here with AQA would also open more options for Mt Dempster and is my call for the most likely 5 year chance that IOH have to get their own production and profits - 40/tonne net profit at 50pct JV would still see several hundred million/year in earnings.
Expansion of the team suggests that at least some of the deposits will end up as JV IOH/someone, but even with blue sky mine eyes I can't start to put a final figure on the value of IOH. De-risked and in production then why can't they be a 5 or 10 billion dollar company (not suggesting that they would have the same small share register though).
5 year SP - 10 dollars 10 year sp - 50 dollars
who knows!?
IOH Price at posting:
$1.62 Sentiment: LT Buy Disclosure: Held
