You probably need to go to ASX disclosures for this company......to confirm for yourself the very bullish tone that I will present here for this stock.
$25 million company....they have almost $5 million cash.
Six weeks ago, they announced the acquisition of iron ore exploration tenements in the Pilbara, one kilometre away from BHP Mining Area C (C mine). BHP is ramping up production to 43 million tons per annum from the C mine, which is about annual revenues of $ 3.5 billion for the mining giant.
Other very large proven BHP deposits, also with a few thousand meters of UMC ground.....known as areas A,B,D,E,F & R, all being part of Mining Area C.... surround the area to the north, west and south of the license now owned by UMC. Originally this area was owned by Goldsworth Mining, prior to BHP taking over their operations. According to UMC this area was surrended in the 1990's during a commodity downturn, when iron ore mining was barely profitable.
FMG unsuccessfully took United Mining Company to the Wardens Court in 2005 to try to bulldoze their way into securing these tenements from the much smaller company.
There is a chance that given the ground owned by UMC.....they may indeed prove up reserves comparable with the 1,500 million tons that the $3 billion FMG now claim.
I would suggest, a great opportunity here for investors in this sector.