I attended the presentation yesterday by Greg Bittar (CEO). The main points for me were:-
1. They seem very confident that they will be the next major Iron ore producer in Australia
2. They seem very confident with the quality of their iron ore....low alumina (?) content, which is vital
3. The NT Government highly supportive, and the best in the country to deal with, when it comes to resources. (I note that a delegation has just been to China with SHD people)
4. Pattersons made the comment that this was as cheap as SHD is going to be (pretty stirring stuff, and clearly Pattersons are supporters)
5. Did not discount a capital raising, but alluded to it being project based, rather than company based. I gather that means that they may sell part of the project to raise capital, rather than issue more shares
6. The iron ore is very near surface and easy to drill.
7. This was BHP's major iron ore project in the 1950's.
8. They have a lot of iron ore up there. They are talking about shoring up 500mt pretty quickly, and that represents just a small portion of their holding.
9. The CEO has a background in Investment banking...a fairly long stint with Morgan Stanley, here and abroad. He seems to have totally grasped this project very quickly. Interesting given his background. It gives the hint of what they have planned.
10. Infrastructure issues did not seem to be an issue and the CEO strikes me as someone who will work through any issues and find an answer.
I was pretty impressed and will continue to accumulate as I can. I think 2011 could be pretty exciting. The presentation material was posted on the ASX yesterday and is worth a look.
SHD Price at posting:
22.0¢ Sentiment: Buy Disclosure: Held
