Member Info for Max111

Anglo, BHP, Rio, FMG all up nearly 4% as DXY dollar goes below 101.

People thought the commodities supercycle is dead. LOL. Just getting started and UFO about to cash in next quarter.

As dollar moves down, commodities & Iron Ore move up.

China's commodity futures open higher at night, #IronOre up 1.2% $115/t.

https://twitter.com/Sino_Market/status/1679113624340799489

Industrial demand for #Silver expected to make up 53% of total demand from 2025:

https://twitter.com/AlienMetals/status/1679045660555763712

Yes Norm. There is no way UFO will be operating on just spot prices.

The AA deal to be signed this quarter actually involves "mandatory hedging to be executed". Not sure how long they will hedge out til. Fenix tend to hedge out 6 months at a time.

Just filling 1 ship provides UFO with millions in net profit. Filling ships for 6 months will make UFO very cash rich and be able to weather out any downturns for a very long time. After 6 months of selling DSO they can put the contractors on pause for as long as it takes.

They have thought of this already.

Plus if Iron Ore is way down, it is likely precious metals and silver will be higher and hopefully silver above its 1980 ATH of $50/oz.

It's actually genius to put the 2 metals together with a contractor model on Iron Ore. Plus UFO own 1 of Australia's largest PGM deposits.

@HH, as I posted in the article earlier, there is strong cost support for iron ore prices at $95-$100/ton since Chinese miners have operating costs around $100/t due to low-grade, high strip ratio & processing/beneficiation costs.

Below $100/t they start shutting capacity providing support to prices.

UFO Operating Costs are below $60/t FOB as stated by Mining Plus who developed Fenix.

Also the reason why UFO will be using the Fenix contractor model rather than putting up their own mining team is firstly due to very low Capex requirement.

And secondly, it is designed to be turned on & off similar to using a temping agency. So relax about Iron Ore prices.

MOST-ACTIVE SINGAPORE AUGUST IRON ORE CONTRACT CLIMBS MORE THAN 3.4% TO $109.5/METRIC TON:

https://twitter.com/FirstSquawk/status/1679021965246443526

FYI, looking at a Linkedin post which ReGroup (working next door at E25) was in and Troy liked, I noticed they partner with Maramara to do the contracting work. See branding on their T-shirts:

https://www.linkedin.com/posts/port-hedland-chamber-of-commerce-incorporated_as-part-of-our-annual-partnership-with-the-activity-7082683175033847808-gAIG/?utm_

"Maramara WA is a majority indigenous-owned Proprietary Limited company. We partner with MARMARA to provide mining and civil construction services to the North-West of Western Australia and employment opportunities to local Indigenous people."

https://regroup.com.au/about/

I'm pretty certain Maramara doing the contracting work will get it over the line at the Native Title meeting this month.

@5x5, I'm surprised you missed this. It was posted on LSE BB back in Sept when someone said they had an email reply from Rod when they asked about the Capex.

"The funds can come from anywhere and don’t have to be equity.

I would think its reasonable that if ½ to ¾ of the start-up capital is being provided by AA then the cost of capital for the additional 5 would be very low interest bearing debt or similar."

Seems legit looking back, since first time UFO publicly stated Opex @$20M (thus needing additional $5M) was in an article in December 2022.

Either way $5M (£3.87M GBP) is peanuts for mining.

When Fenix announced Native Title and Equity Raise for their project in August 2020, it caused their SP to double. Then doubled again from there as they started production. Then doubled again.

And they only had a tiny fixed resource to work with & no exploration upside.

Funding production with hedging in place (which is part of the AA deal) is very different to funding for Working Capital.

Vale upgraded at Wolfe as iron ore prices top expectations:

https://seekingalpha.com/news/3986862-vale-upgraded-at-wolfe-as-iron-ore-prices-top-expectations

Vale up +4%

"cost support for iron ore prices at $95-$100/ton"

"anticipates Chinese miners repeating a past practice of shutting capacity below $100/ton"

Chinese mines shut capacity below $100/t due to having low-grade ore with high processing costs.

UFO Operating Costs = just $60/t FOB.

@Bob, I wish I was on the UFO payroll and managed their Twitter account. PR is a very lucrative business.

I've seen companies raise £500,000 just for PR and their SP still halved during the downmarket.

After Rod said he was going to cut out the fat, the sacked Yellow Jersey (Financial PR) and then no new marketing material.

But at least it proves they weren't after raising funds from the market - just got $1M loan from UFO's backer.

And rest will be loan also IMO as Rod informally mentioned.

@livestock. No, I'm not on the payroll of UFO, but unlike you I am a shareholder.

You reference David Llewellyn-Smith who is a nut job that has been claiming China is going to collapse for the past decade. Now he is saying Rio Tinto will also be going into a 20 year bear market 🤡

Whether we like it or not, China is not going anywhere. They have got 30% of their country still to build and are far less urbanised than the US and are planning to add 300 million people to their middle class by 2030.

Also they have the highest household savings rate in history.

Then look at India. World's largest population, and they are just getting started.

Plus other massive infrastructure projects around the globe.

Also you need to look at the dollar. How will commodities do in dollar terms over the next 20 years?

All commodities are going significantly higher priced in dollars.

@livestock you are posting yesterday's article with prices I'm more than delighted with since UFO have Total Operating Costs of $60/t FOB.

FYI, Iron Ore just closed on DCE night trade up +1.12% at ¥813.

As UFO transitions from being an explorer to a miner, imagine keeping Bill who kept saying "I'm an explorer, not a miner!"

UFO getting set up to go to production & July is a key month.

This is now the 3rd day I'm getting NT to buy 1M shares. Hasn't happened for a very long time.

@Monochrome, Try this https://www.linkedin.com/company/alienmetals/posts/?feedView=all

Or Google "Alien Metals Linkedin"

But you might have to be signed into Linkedin

nice to see the "sourcing and origination manager, iron ore at anglo american" like ufo's most recent linkedin post 😀

https://www.linkedin.com/posts/alienmetals_microsoft-word-alien-metals-completion-activity-7081604872747278336-xd3b/

july going to be very interesting:

"the company is continuing work on multiple fronts towards putting the han**** project into production and to this end there is a key native title meeting scheduled in july following which the company will have a clearer idea on the timing for production commencing."

"the company proposes to provide a strategy and board structure update in july 2023."

"the company's focus is on delivering a profitable, long life direct shipping iron ore operation based out of the pilbara in western australia."

game changer month!

Yes, I've been getting NT to buy 1M shares since yesterday.

UFO getting set up to be a producer.

Read last RNS and wait for:

"The Company proposes to provide a strategy and board structure update in July 2023."

"The Company's focus is on delivering a profitable, long life direct shipping iron ore operation based out of the Pilbara in Western Australia."

@goingtomoonufo you can follow him on linkedin:

https://www.linkedin.com/in/bill-brodie-good-35293a91/

his last comment regarding ufo was:

"ceo and technical director with alien metals ltd, adding significant value and projects to the companies portfolio including significant 10mt + dso iron ore discovery and maiden resource on the han**** project further to its acquisition in the pilbara, the elizabeth hills silver project in wa along with surrounding ground associated with the munni munni intrusion and most recently the acquisition of the munni munni pge project to create a substantial highly prospective portfolio of assets with the push to get the iron ore into production in 2023 along with building an excellent technical team to advance all projects."

if you haven't realised yet, ufo transitioning from explorer to producer.

ufo operating costs = $60/t fob

massive margin to be made.

also don't forget rns 05 may 2023 stated "the haul road could also be continued through the main han**** tenement to allow its use by neighbouring stranded tenements, providing alien with the strategic opportunity to charge transit fees. this would provide the company with an additional income stream to that of the han**** material itself, further improving the project's already excellent economics."