The sector has had a big impact. Look at SILJ. It was at 18 on 1st June, now at 13.7. But analysts are saying that is about to change after silver options expiry today and FOMC meeting today, with rate decision tomorrow evening (UK time).
IMO what is needed to move the pendulum for a project generator company like UFO to go to high gear is for Bill, the BOD and the tech team to prove their technical competence in hunting for the commodities, and converting the exploration targets into a JORC compliant resource. This is exactly what is about to happen.
@ohwhatif, someone asked Bill that question in the June Presentation and he said: "There has been no discussion or thought to that at the moment."
@HH, it is unfair to compare UFO with other juniors that require hundreds and even billions of pounds of investment in order to get their commodity to market. It is better to compare UFO with a company like Fenix that only has under 10M tonnes of DSO and a market cap of over £100M. Plus they are trucking their DSO 490km, when as Bill said at the presentation, "We are only 170-180km by road to Port Hedland and we are in the heart of Iron Ore country, the infrastructure is there, the roads are fantastic." Fenix only took 4 months to build their mine = Very simple operation. 1 excavator, 3 trucks. Crushing & screening using a mobile modular unit. Therefore, unlike the other juniors, it's not going to take 8-10 years for UFO to be able to cash in on the high iron ore price which Goldman said, "Iron ore bull market likely to run until at least 2023".
In Turner Pope's SOTP valuation Research Note they stated:
"Discovering significant deposits and advancing them to resource estimate stage, either with a partner or by self-funding, will be the KEY DRIVER behind any valuation uplift for the Company."
This is exactly what the company is doing with making significant discoveries at phase 1 drilling, awaiting phase 2 resource drilling results which Howard Baker (who did the Mineral Resource Estimation for Rio Tinto’s Brockman sites) will then work on to convert into a JORC.
It's also important to note our valuation at Hanc0ck is only based on the Sirius Extension target. It doesn't include Ridge C (850m of DSO strike), Ridge E (1400m of strike which remains open in both directions - further 8.5km to the east within the tenement!) and the new target "Krill Back". Plus we have only covered less than 30% of the tenement. Our exploration will be revised significantly upwards IMO.
Also RNS 9th Oct (which was the only RNS during the rise to 3p) stated: "Initial interpretations are excellent with indications of the presence of a larger amount of the mineralised Brockman Iron Formation than originally thought."
Should be getting the permit to drill Brockman very soon. Can't wait!
Rio Tinto & BHP are almost at record levels and we are only just starting the infrastructure stimulus. Looking great for Iron Ore. So grateful to have stumbled into this sector, when I initially came for the silver!
Yes, and getting very close to finally getting a JORC on the Sirius Extension which IMO by itself will have a larger amount of DSO than Fenix's total reserves. Eg. hole 48 = 103m @ 61.8% Fe from top to bottom and open at depth! Absolutely incredible!