PLV 0.00% 1.2¢ pluton resources limited

this is real cap $60m v $175m npat pa iron ore

  1. 1,690 Posts.
    lightbulb Created with Sketch. 868
    Surely the perception must be with this stock, is that funding will not happen and the project wont proceed......and it is fair enough, that buyers & sellers can make up their own mind.

    It is clear though, that SHOULD this project proceed, there is upside here that may not easily be found elsewhere. (My comment based on broker reports and companies recent PFS)

    Pluton Resources is not vanadium, titanium, zinc, rare metals or even uranium.....rather the "creme" (in terms of the past views of local investors, at least)- ie surface iron ore, without port and rail issues....in the Hammersley, adjoing very successful Koolan and Cockatoo Islands.

    In production in two years .....according to the company would see profits before tax and interest of $500m PA, based on todays spot (and their cost of production of $74 per ton including royalties). Pluton will produce very high grade iron ore 67%FE or about $195 per ton (including cost of sea freight from Irvine Island, which will be about $6 per ton from Pluton owned port facilities.)

    So thefre you go.....see story below for a guide to revenues and demand as strong as ever. Pluton gross profits of $110m per ton on 4.4mtpa......company say they may 50/50 JV the project (subject to partner providing finance and offtake). Therefore my header $175mnpat for Pluton.

    It is IRON ORE and they have a independant PFS.

    PLV basically consumed by overall market negativity...same as MGX, even RIO (all of them) suffering at the moment....the thing though about MGX, RIO their share price cannot increase by 5 times- PLV can.(based on broker report and PFS)

    _______________________________________________

    Iron Ore-Spot extends gains on firm Chinese steel demand

    REUTERS

    By Ruby Lian and Manolo Serapio Jr

    SHANGHAI/SINGAPORE, July 15 (Reuters) - Spot iron ore prices extended gains on Friday, driving a key global index to near two-month peaks, as steel mills in top producer China continued to restock the raw material in anticipation of strong steel output and demand.

    Spot offers for Indian 63.5/63-grade ore rose for a third day, by another dollar to $182-$184 a tonne, including freight, said Chinese consultancy Umetal.

    Quotes for Australian 62-grade Newman iron ore fines remained firm at $178-$180 a tonne.

    "Steel mills have increased their buying in the face of strong steel prices and output, and miners also held on to their offers and wanted to push them higher," said an iron ore trader in eastern China's Shandong province. Continued...

 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.