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For perspective (and this is my own estimation, you're welcome to come to your own) but when this was 0.5p I said that fair value on announcement of a JV for D2 would be about 2p. We flew through that and spiked, leading to a panicked sell off which made us massively oversold (on technicals and my own assessment).
I have long asserted that despite the PM bull market, our Iron ore prospects really are (to use BBG/Zak Mir's phrase) the jewel in the crown.
So with a JV in place and very positive assay results on our first iron ore project, where should we be? In my humble opinion, a very, very long way north of 1.7p.
Superb news. Plenty of targets with a %Fe above 60, which if I'm not mistaken qualifies them for Direct Ore Shipment rather than on site processing. This will significantly minimise the costs for establishing a mine and processing facilities - dig it up and dump it on a truck. Money in the bank.
I'm probably jinxing it now, but I think there were lots of positives in the SP performance yesterday, specifically that it tested 1.5 on a couple of occasions but bounced back up, suggesting we have some resistance here. Having said that I can't see much happening today and I think we're likely to stay flat or lose another couple of percent by day end. Bring on the assay results.
Considering how my other shares are doing today I'd say UFO is holding up remarkably well. The price is bouncing around all over the place so it's hard to tell what Mr MM is up to, but I suspect we're just seeing the effects of low liquidity and less interest in the share compared to recent weeks. I think we'll finish largely flat today, dependent of course on if there is any intra day news.
I agree. In retrospect its clear to see that the rise to 3p was driven by some over the top expectations of what our first JV would look like. But I don't see any evidence that the assay results are priced in, simply because we don't know what that will be so it's pure speculation. Here's hoping for some good grades when the results come in!
Good to see you back Otsenpai.
My own view is that the SP was due a bit of consolidation but that 1.5 was way oversold, especially with the news that has dropped recently. We're churning through a few shares now and like you say once the warrants clear we should be looking good. I will be adding where I can at this level.