| Iron ore continues to trade on or near its all-time record highs. Currently $219.77 for 62% FE (source: www.businessinsider.com).
For an outlook on iron ore's future, see the CNBC article "Iron ore is in a bull market — and it won’t run out of steam soon, says Goldman" (https://www.cnbc.com/2021/07/16/goldman-sachs-on-iron-ore-bull-run-outlook.html).
The following is an excerpt from the article:
Iron ore prices are not likely to stay above $200 per ton, said Kendall and Erik Hedborg, principal analyst at commodities intelligence firm CRU. “If we’re looking ahead — sort of 12 months — I don’t think we’ll see a collapse in the iron ore price,” said Kendall. “I think prices over $200 a ton are unsustainable, but we’re likely to see prices stay around $150 a ton,” he said.
Macarthur Minerals (TSXV: MMS/ASX:MIO) is moving forward aggressively with three important initiatives; - Direct Shipping Ore. With prices at all time highs Macarthur is moving forward to begin DSO operations on or around year end.
- Bankable Feasibility Study (BFS). The Company continues to make progress to complete the BFS to begin sourcing project financing to put their high grade 1.3 billion Lake Giles asset into production.
- Spin-out of noncore assets. Macarthur is focused on their iron ore assets and production. The company has amassed high quality non-iron ore assets and has spun these out to potentially increase shareholder value as these assets are not currently showing any additional value to Macarthur and they should be.
See the chart below. Macarthur has broken through its 50 and 200 day moving averages, is seeing increased volumes and closed at $0.60 yesterday on the ASX. Strong asset and management. View Fortescue (ASX: FMG), Champion (TSX:CIA) and Labrador Iron (TSX:LIF). All at or near record highs. Miss those? We believe Macarthur is significantly undervalued and has tremendous upside. Look at Champion’s price in 2017, very comparable stage to where Macarthur is now. |