NAU - valued less than one annual profitstranslated with google:
"The company is valued less than one annual profits"
Published 2011-10-10 - Privata Affärer (a Swedish Business Magazine)
Increasing demand from China and an increase for Iron Ore prices speaks for Northland Resources - which is one of the most interesting shares right now, according to Bjorn Davegårdh. He intends to buy at the bad days on the stock exchange.
Only misery in the world, but I've been in Pajala. That makes me happy. Sports fans know that Charlotte Kalla grew up there. Many have read "Popular Music from Vittula" by Mika Niemi.
Pajala was also rewritten when the town's bachelors invited women from Russia, Finland and England to the annual cultural weeks, Römppäviikko, which takes place in late September each year. The idea was understood that the remedy of women in the municipality. I think the effect has not materialized, but it will.
Pajala has been an exodus district for 50 years, but now it has turned with a vengeance. Just recently rented a villa for 69,000 kronor (USD 10.000) a month. The reason is the large iron ore project run by the Northland Resources - one of the most interesting shares right now.
Northland Resources is listed on stock exchanges in Oslo and Toronto, but traded and guarded by several large banks and nätmäklarfirmor in Sweden. This calculation is awesome. Northland will break around 5 million tonnes per year. It is about a fifth of LKAB's size, but it does still Northland to Europe's second largest iron ore mine.
The entire production is already sold out for the next 70-10 years. Settlement takes place gradually to the current market price minus a few percent of the brokerage commission. The ore is known as magnetite by 69 per cent iron content, which is among the highest in the world (LKAB 70 percent). Compared with other types of iron gives it a price in terms of premium because it has lower content of sulfur, aluminum and other materials that pollute the iron.
Mining is done in the pits giving low cost. Even including the transport costs are low compared with most competitors. The state has promised to invest in the ore line to Narvik to increase capacity. In the longer term, it is also possible with an extension of the railway to the mine in Kaunisvaara.
All forecasts are talking about a surge in iron ore prices. Foremost is the China that accounts for an increasing demand. Commodity guru Jim Rogers sees a shortage of almost all commodities in front of him and anticipate continued boom in the industry. Recently I saw an analysis that estimated a 40 percent price increase over the next ten years. Although prices halved yesterday the company at a profit. If the world's commodity analysts predict the correct valued Northland lower than an annual profits.
Still remains a lot to loose in terms of financing. A consortium of banks to lend $ 400 million. In today's Greece climate, it is not entirely clear that it goes well. On the other hand, requires almost a civil war in China to find better lending projects.
The banks would say no, I am also quite convinced that the Swedish government set up by, for example, LKAB. The Finnish government is also already included as shareholders (one of the deposits located on the Finnish side).
The stock has this year gone down 20-8 Norwegian kr. Naturally, I intend to buy a little at a time in poor trading days and increase in funding is in place. Meanwhile, ongoing construction of fully and completely on schedule.
Pajala has become a Swedish Klondike. Much of the credit goes to former Mayor Bengt Niska. It is teeming with activity and some 30 new companies have already established. The roads to be repaired and traffic intensity increases. "There is a big difference from before," says Bengt Niska and continues: "If a couple of years ago saw two cars in a row, you could be sure that it was a funeral procession."
Those who are long term and want a bit speculative shares are a good choice in Northland. Do you also have a little heart in the investment is shares outstanding. It is almost as I want to be northerner.
Bjorn Davegårdh is one of the most experienced stock market writers"