Wednesday, May 7, 2014

Seeking Alpha on Iron Ore Basics


Seeking Alpha on Iron Ore Basics

Today the Seeking Alpha publishes a very informative material on iron ore: The Important Factors to Consider When Investing in Iron Ore by James Duade. In my opinion, this is very useful for both investors and mining companies, as the author pinpoints some crucial facts.

"... the market is beginning to see quite a few new mining companies spring up. For instance earlier this month we saw a Canadian IPO for an iron ore company in the Ukraine called Black Iron. Additionally, some iron ore firms are starting to attempt to develop deposits in relatively remote areas like Zone Resources (ZRESF.PK) in Northern Canada. This article will look at some of the more technical aspects that an investor should consider when conducting their diligence on a firm in the iron ore sector. The goal is to give investors a few tools that they can use to make intelligent decisions about the positions they decide to take."

Besides, explaining the iron ore basics, Mr. Duade also mentions hematite, taconite and magnetite -- and those companies that are major producers. Also worth reading is the discussion of Platts Iron Ore Benchmark index.

Overall, the material is not something very new and exciting for the mining gurus, but for the investment purposes -- it is worth reading.

"Intelligent investors will pay close attention to the location of the mine, the cost per ton--including transportation of the iron to port--and the type and grade of the iron product the firm is selling."
You may read it at this link.

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