"11.09.2013 18:00 clock | Hannes Huster Indo Mines Ltd. Surprisingly purchase of land A few weeks ago confirmed the Indo-management that until the issue of the export license, all major expenses are to be retained. Yesterday, however, Indo announced that the company has purchased large tracts of land near the iron sands project in Indonesia.
A total of 140 acres of land to be bought, and it is already turned over 100 acres agree and management believes that the remaining 40 acres can be purchased. The land is purchased from local farmers, which is basically a turnaround near. Because there was resistance against the construction of the processing plant, which could be resolved with this deal.
The country is Indo Mines cost USD 9.2 million and around 110 acres will be needed for the complete system again, the one currently being negotiated.
Conclusion:
Although we the purchase price seems very high, this step at the current time is suspicious. Without export license or the chance to get this soon, this purchase would be very risky.
Maybe Indo Mines was with this move but able to bring not only the local farmers on their side, but also the government, which is responsible for the issuing of the license.
The stock reacted yesterday and today with price increases in Sydney, which is also suspicious. Also, the order book looks exciting. On the demand side, there is the insistence dense, whereas there is not much supply in the market up. We keep Indo Mines, the reasons we have mentioned last you several times. A significant recovery should definitely be possible, then we can still dispose."
IDO Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
