MOL now the best value in the sector?Roca was the obvious choice in the last year as they were the first decent sized mine to get into production.
But listening to the Dejardins presentation, it now looks like MOL is vying for the next best play in the sector as they say they will be in production mid '09 (not sure how reliable that statement is, but if they can pull it off, they will beat the rest of the big mines by at least a year and will enjoy high prices that others aren't likely to enjoy).
And what really is intriguing is their recent iron ore find adjacent to the pit. High grade near surface Hematite that carries about $100 tn profit margin at current prices. Any modest sized operation could add significant cash flow at modest additional cost.
I think MOL is ready for a significant rerating over the next 18 months. It has 5 bagger upside.