Cline Buyout
The following article is interesting because China is buying Iron from Utah.
The transportation cost from Utah to China is substantial.
Bob Moriarty correctly states Iron mining is better then gold.
Cline 100% owned Iron Mine, even at 100 Million Tons, is worth hundreds of millions of dollars especially because of its close proximity to China.
Cline annual report states Cline has a world class deposit in view.
Cline Iron Mine will be one of the lowest cost producers in the world. Capital financing will not be an issue; China, ThyssenKrupp Mitsui and other Asian financing will be available.
The value of this Iron project will be a key playing card, if Ken Bates is selling Cline.
The real value of an Iron mine, is what the owner can do with the free cash flow over 30 years. This huge free cash flow allows the owner to take on debt and buy out other companies.
Ken Bates is probably trying to sell Cline based on its Iron project.
Cline has Iron, Coal, Uranium and Gold projects
The purchase price of the New ELK Coal Mine was set before the recent coal price increase. The purchase price would be higher in today’s coal market.
MP
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Better than Gold
Bob Moriarty
Archives
Apr 4, 2008
I first wrote aboutPalladon in February of 2005 when the stock was $.435. Last December I wrote about them again but as a tax-loss selling candidate. The stock was $.19 a share. The stock has been a disappointment to me and all of my readers for three years now.
That just changed. The long-awaited and long-promised deal was just announced.
It's a barnburner for Palladon and 50% partner, Luxor Capital. A Chinese steel company has agreed to buy 2 million tons a year at market prices, FOB Long Beach, California. They are buying run-of-mine ore. Palladon has to do minimum processing, pretty much blast, mix with an existing stockpile and ship. They will be mining and shipping 55% FE ore.
Here's how the numbers work out. Iron just saw a 65% price increase. 55% iron FOB Long Beach is probably worth between $60 and $90 a ton.
It costs Palladon between $35 and maybe $45 to blast, mine, mill and mix. Palladon also picks up the loading in Utah and transportation to the West Coast.
So my figures show Palladon's 50% interest in the project should be worth $25 to $45 profit per ton on a million tons. So $25 to $45 million a year profit starting in about 120 days.
Palladon's market cap today is about $27 million dollars. This is the deal we all have been waiting for. Palladon needs to raise about $5 million to begin shipping. They expect to be shipping in about 120 days. I expect the company to have something like 100 million shares fully diluted after the PP.
I owned shares before. As soon as I saw the Press Release I bought more. I intend to participate in the Private Placement which I fully expect to take place at a higher price than today. I am biased. They are advertisers. Do your own math and due diligence.
Believe it or not, iron has gone up more in the last 7 years than gold has. Iron is better than gold and Palladon/Luxor are sitting on one of the most attractive deposits in North America.
Palladon Ventures
PLL-V $.37 (Apr 3, 2008)
PLLVF-PK 76.4 million shares
Palladon Ventures website
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Apr 3, 2008
Bob Moriarty
President: 321gold