Asian Spectator

ACN Newswire Business

Reinforce Your Portfolio by Diversifying into Iron Ore -- SECFilings.com

  • Written by ACN Newswire
Reinforce Your Portfolio by Diversifying into Iron Ore -- SECFilings.com
Redondo Beach, CA, Oct 22, 2018 - (ACN Newswire) - SECFilings.com, a leading financial news and information portal offering free real time public company filing alerts, announces the publication of an article covering what's driving iron-ore prices higher and why investors may want to diversify into development-stage opportunities, like Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (FRANKFURT: BIN).

The iron-ore market is dominated by a few multi-billion dollar companies, including Vale SA, BHP Billiton plc, and Rio Tinto plc. With iron-ore prices on the rise, Vale shares have risen nearly 20 percent so far this year. But investors may want to look beyond the majors for the best value - development-stage companies nearing commercialization may have a place in savvy portfolios.

Focus on High-Grade Producers

China's efforts to reduce excess capacity and improve environmental standards has created a rift in the industry. Vale and Ferrexpo plc are leading producers of high-grade 65% iron-ore, which explains why they've been outperforming BHP Billiton and Rio Tinto. The gap between benchmark and high-grade iron-ore has increased three-fold over the past two years and is poised to continue to rise amid the environmental crackdown.

Currently, benchmark 62% iron-ore trades at around $71 per ton and high-grade 65% iron-ore trades closer to $97 per ton, which amounts to a nearly $30 per ton premium. The demand for high-grade iron-ore is poised to continue to rise in the future, which means that companies producing it could benefit from both higher pricing (e.g. stronger margins) and greater volume (e.g. higher revenue) - a compelling dynamic.

Investors interested in the iron-ore space should consider high-grade producers, like Vale and Ferrexpo, rather than benchmark grade producers to capitalize on these trends. In particular, Vale recently announced record iron-ore production during the third quarter and plans to cut its net debt in half to $10 billion and increase returns to shareholders over the coming quarters, which could catalyze the stock even further moving forward.

Diversify into Early-Stage Opportunities

Precious metals investors are familiar with diversifying between junior and major producers, but the practice is less common for industrial metals. Investors interested in the iron-ore market should consider this kind of diversification to maximize their potential portfolio returns and limit the risk from any individual stock turning lower. But there are only a handful of attractive opportunities in the space focused on high-grade iron-ore.

Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (FRANKFURT: BIN) is a development-stage opportunity that aims to produce 68% ultra-high-grade iron-ore. Management believes that this level of purity could command a $40 per ton premium over benchmark iron-ore prices, particularly given the rarity of only 4% of global producers being able to achieve this high iron grade. The company's 100%-owned project in Ukraine was initially derailed by the Russian crisis, but is making progress once again.

Assuming a conservative $62 per ton long-term price for benchmark iron-ore and iron content premium of $5 per 1% iron, the company projects a 40% percent after-tax levered internal rate of return. At current prices, the company estimates it could achieve a 68% after-tax levered return given the strong pricing for premium iron-ore. These are compelling returns from a potential pure-play on iron-ore's strength.

Earlier this month, the company announced that it received a formal proposal from Ukraine's government to lease a plot of land connected to its Shymanivske iron ore body for location of the processing plant, tailings, and waste rock. This marks a significant milestone for the company and demonstrates the Ukrainian government's support for the mine to be constructed in a timely manner starting mid next year.

Management has also been recently holding discussions with potential offtake partners including large steel mills and metals traders to provide the right to purchase its product over a period of time in exchange for a meaningful investment to help fund the project's construction and build out - the final piece of commercializing the venture.

Looking Ahead

The iron-ore market is likely to become increasingly bifurcated thanks to China's crackdown on steelmaker emissions. While Vale has been a popular investment, for good reason, investors may want to consider diversifying into development-stage names like Black Iron Inc. (TSX: BKI) (OTC: BKIRF) (FRANKFURT: BIN) as well. The company's project could pay dividends over the long-term as China continues to seek higher-grade iron-ore.

For more information on how to diversify your portfolio please visit the company's website at http://blackiron.com[1]

Please follow the link to read the full article: https://bit.ly/2JfCbRf[2]

About SECFilings.com

Founded in 2004, SECFilings.com provides free real time filing alerts to over 600,000 registered members and offers services to help public companies grow their audience of interested investors.

Disclaimer

SECFilings.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on http://www.secfilings.com[3] (the 'Site') is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. SECFilings.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. SECFilings.com received compensation for producing and presenting high quality and sophisticated content on SECFilings.com along with financial and corporate news.

The above article is sponsored content. Emerging Growth LLC, which owns SECFilings.com, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://secfilings.com/Disclaimer.aspx[4].

Paul Archie406-862-2242[email protected][5]

Source: SECFilings.com

Topic: Research / Industry ReportSectors: Metals/Mining, Daily News[6][7] http://www.acnnewswire.com From the Asia Corporate News Network

Copyright © 2018 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

References

  1. ^ http://blackiron.com (blackiron.com)
  2. ^ https://bit.ly/2JfCbRf (bit.ly)
  3. ^ http://www.secfilings.com (www.secfilings.com)
  4. ^ http://secfilings.com/Disclaimer.aspx (secfilings.com)
  5. ^ [email protected] (www.acnnewswire.com)
  6. ^ Metals/Mining (www.acnnewswire.com)
  7. ^ Daily News (www.acnnewswire.com)

Authors: ACN Newswire

Read more http://www.acnnewswire.com/press-release/english/47163/

Bityuan's blockchain, the first public chain to realize parachain technoogy

HANGZHOU, CHINA, Dec 11, 2019 - (ACN Newswire) - Bityuan is a simple blockchain network, but the first public chain in the world to realize parallel chain (parachain) technology. Parachain ...

Harbour Air and magniX Announce Successful Flight of World's F...

VANCOUVER, British Columbia, Dec. 11, 2019 /PRNewswire-Asianet/ -- -- Inaugural flight is the first step in becoming the world's first all-electric commercial fleet Harbour Air ( https://c21...

Magic Leap Launches Spatial Computing for Enterprise with New ...

PLANTATION, Florida, Dec. 11, 2019 /PRNewswire-AsiaNet/ -- -- Global enterprises, including NTT DOCOMO, Boston Consulting Group, BNP Paribas, Deloitte, Hyperloop TT, JetBlue Vacations, McLar...

Supermicro Second Annual Green Data Center Report Finds Opport...

SAN JOSE, California, Dec. 10, 2019 /PRNewswire-AsiaNet/ -- -- Survey Results Show 88% of Data Centers Are Not Green, and the Typical Enterprise Data Center Can Save Up to $38 Million in Ene...

Volvo Trucks Presents Heavy-duty Electric Concept Trucks for C...

GOTHENBURG, Sweden, Dec. 10, 2019, /PRNewswire-AsiaNet/ How can the environmental and climate impact of heavy goods traffic be reduced while the demand for transport continues to increase? V...

IR Magazine Forum Awards - Greater China 2019: Award winners announced for the IR Magazine Forum Awards - Greater China

HONG KONG, Dec 10, 2019 - (ACN Newswire) - A grand total of 25 awards were presented at the IR Magazine Awards - Greater China (https://events.irmagazine.com/greaterchina/), held in Hong Ko...

Taco Bell Melbourne Makes History with World’s First Tram-Thru

MELBOURNE, Australia, Dec. 10, 2019/Medianet International-AsiaNet/ -- International taste-trailblazer Taco Bell has officially arrived in Melbourne – and as expected, it served up an ...

Eye Level recognizes young talents at its 27th Eye Level Liter...

SEOUL, South Korea, Dec. 10, 2019 /PRNewswire-AsiaNet/ -- Eye Level, a global leader in the education industry, has successfully held its ceremony for the 2019 Eye Level Literary awards on D...

MIRISE Technologies to be Launched to Develop Semiconductors in Effort to Achieve Safe and Comfortable Future Global Mobility Society

TOKYO, Dec 10, 2019 - (JCN Newswire) - DENSO Corporation and Toyota Motor Corporation today announced that they have named the joint venture to be established in April 2020 MIRISE Technolog...

Colt connects to Alibaba Cloud in Asia, supporting businesses in their cloud based digital transformation strategies

TOKYO, Dec 10, 2019 - (ACN Newswire) - Colt Technology Services, a leading provider of agile, high-bandwidth connectivity solutions, today announced that Colt's Dedicated Cloud Access (DCA)...

Avianca Airlines partners with FirstHive to better understand its customer behavior

SUNNYVALE, CA, Dec 10, 2019 - (ACN Newswire) - FirstHive today announced that it will begin deployment of its Intelligent Customer Data Platform as part of a pilot program aimed to help Avi...

Chief Digital Officer Role Having Powerful Impact on Digital T...

WARREN, New Jersey and BANGALORE, India, Dec. 10, 2019 /PRNewswire-AsiaNet/ -- - Business and IT professionals see a clear long term need for the CDO in driving organizational changeMindtree...

Commencement of Major Renovation of Tsukuba Research Laboratories as Eisai Global Drug Discovery Center Aiming for Connecting Human and Human, and Data, and the World

TOKYO, Dec 10, 2019 - (JCN Newswire) - Eisai Co., Ltd. announced today that Eisai had a groundbreaking ceremony for a major renovation of its Tsukuba Research Laboratories (Ibaraki, Japan) ...

OANDA appoints Greg Niebank as Head of Product

LONDON, Dec. 10, 2019 /PRNewswire-AsiaNet/ -- A global leader in online multi-asset trading services and currency data and analytics, OANDA Global Corporation[http://oanda.com/] has further ...

2019 Shanghai Private Label Fair Grand Opening

SHANGHAI, Dec. 10, 2019 /PRNewswire-AsiaNet/ -- Asia's highly-anticipated private label event, the Shanghai Private Label Fair (2019PLF), sponsored by International Sourcing (ShangHai) Adver...

JCB Releases Muslim Friendly Japan Special Offer Guide

TOKYO, Dec 10, 2019 - (ACN Newswire) - JCB International Co., Ltd., the international operations subsidiary of JCB Co. Ltd., the only international payment brand based in Japan, will releas...

Destination NSW: Walk From Sydney's Iconic Bondi to Manly on S...

SYDNEY, Dec. 10, 2019 /PRNewswire-AsiaNet/ -- Destination NSW has today released spectacular video and image highlights of the newly opened walking tracking between Bondi and Manly.Walking b...

Macau Light Rapid Transit Begins Commercial Operations

TOKYO, Dec 10, 2019 - (JCN Newswire) - Mitsubishi Heavy Industries Engineering, Ltd. (MHIENG), a part of Mitsubishi Heavy Industries (MHI) Group, has completed construction of an Automated ...

WARC identifies successful content strategy trends for effective marketing

LONDON, Dec 10, 2019 - (ACN Newswire) - WARC, the global authority on advertising and media effectiveness, has today released the Effective Content Strategy Report, outlining key trends and...