Alderon Iron Ore Corp AXXDF

More advantages

[greenandgold]

In looking at the universe of iron ore juniors in Canada I noted a couple more advantages Alderon has:
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1) Culture. Both Labrador City and Fermont are iron ore company towns, they only exist because of the exploitation of particular mineral reserves. Local residents understand mining, have benefited from mining, and will likely support Alderon's effort to build a mine, and, eventually, expand. Some of these other juniors in odd places like Nunavut and Nunavik will find out how difficult it is to fight community opposition to every piece of infrastructure they build. The port will be too big, the shipping lanes will destroy hunting grounds, the mine will use too much water and produce too much pollution, not enough jobs will go to untrained First Nations members, etc etc.
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2) Existing shipping lanes. Building a port or building an expansion to an existing port costs the roughly same amount of money. But the latter option means not having to deal with community opposition to new shipping lanes. No one cares if a few more ships use a new dock at Sept-Iles port to sail in establishing shipping lanes. Everyone will get upset with your newly proposed shipping lane that cuts across where the walrus swim.
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3) Analyst coverage. ADV has a lot of analysts covering it, some of these other iron ore juniors have almost none (AXI has one analyst covering it). Why does this matter? Because all these iron ore juniors claim they will be in production by 2014 or 2015. This means they need to raise billions of dollars for capex in the next 3 or 4 years. A lot of this money will come from private placements and equity deals with the brokerage houses that employ these analysts. No analyst coverage means you can't raise serious money in the public equity markets.