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Bulk Buys: Think +$US190/t is good? You should see what Grange Resources is raking in
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This is getting absurd.
Iron ore was up another $US6.35 – or 3.4% — yesterday to $US191.45/t (CFR Tianjin port). That’s very close to all-time highs of ~$US200/t, reached in November 2007.
It also is not representative of what some high grade, high value product miners are actually getting.
Environmental regulations in China are prompting steel mills to pay more for the high quality iron ore products – a lot more.
Iron ore ‘lumps’ and ‘pellets’ earn a price premium over iron ore ‘fines’, which must be processed further before going into a steelmaker’s blast furnace.
S&P Global Platts said pellets with 65 per cent iron were receiving a premium of $US64.65 per tonne above the benchmark price.
That’s ~$320/t Australian all up.
Tassie pellet producer Grange Resources (ASX:GRR) says it received average prices for the March quarter of US$228.52/t ($297.66/t), compared with US$174.69/t ($236.77/t) for the December quarter.
That is a huge profit on costs of ~$113/t.
Here’s how ASX-listed iron ore stocks are performing:
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop
| CODE | COMPANY | 1 WEEK RETURN % | 1 MONTH RETURN % | 6 MONTH RETURN % | 1 YEAR RETURN % | PRICE | MARKET CAP |
|---|---|---|---|---|---|---|---|
| BCK | Brockman Mining | 138 | 103 | 146 | 283 | 0.069 | $ 733,059,338.35 |
| VMS | Venture Minerals | 34 | 53 | 149 | 521 | 0.087 | $ 105,654,557.57 |
| RHI | Red Hill Iron | 27 | 86 | 210 | 242 | 0.65 | $ 38,920,796.85 |
| CAP | Carpentaria Resources | 20 | 46 | 38 | 116 | 0.054 | $ 18,360,000.00 |
| IRD | Iron Road | 17 | 19 | 66 | 488 | 0.28 | $ 222,757,149.29 |
| TI1 | Tombador Iron | 11 | 10 | 182 | 275 | 0.079 | $ 83,532,450.40 |
| GRR | Grange Resources | 10 | 27 | 156 | 193 | 0.615 | $ 694,403,218.80 |
| GWR | GWR Group | 8 | 25 | 89 | 371 | 0.33 | $ 102,947,390.62 |
| FMG | Fortescue Metals | 8 | 14 | 38 | 100 | 22.89 | $ 69,892,503,638.60 |
| FEX | Fenix Resources | 8 | 45 | 134 | 567 | 0.34 | $ 166,426,830.80 |
| CIA | Champion Iron | 7 | 33 | 127 | 267 | 6.97 | $ 3,549,276,309.64 |
| SRK | Strike Resources | 7 | 23 | 153 | 513 | 0.245 | $ 60,547,895.66 |
| DRE | Dreadnought Resources | 6 | -5 | -24 | 280 | 0.019 | $ 41,730,000.00 |
| JMS | Jupiter Mines | 5 | 9 | 18 | 41 | 0.34 | $ 646,467,040.89 |
| MIN | Mineral Resources | 5 | 25 | 80 | 191 | 46.12 | $ 8,634,671,176.50 |
| AKO | Akora Resources | 5 | -13 | 0.33 | $ 16,904,448.00 | ||
| GEN | Genmin | 2 | 6 | 0.28 | $ 78,211,776.44 | ||
| RIO | Rio Tinto | 2 | 11 | 30 | 41 | 122.84 | $ 45,477,698,377.14 |
| BHP | BHP Group | 1 | 7 | 35 | 57 | 48.09 | $ 140,929,530,688.96 |
| ADY | Admiralty Resources | 0 | 5 | 92 | 360 | 0.023 | $ 28,978,367.48 |
| CZR | CZR Resources | 0 | 0 | -14 | 20 | 0.013 | $ 45,510,000.00 |
| MGX | Mount Gibson Iron | -1 | 15 | 29 | 40 | 0.88 | $ 1,061,395,874.31 |
| MGU | Magnum Mining & Exp | -3 | 70 | 233 | 325 | 0.17 | $ 68,044,077.12 |
| RLC | Reedy Lagoon | -5 | -9 | 62 | 950 | 0.021 | $ 9,870,549.49 |
| SHH | Shree Minerals | -6 | 7 | 14 | 700 | 0.016 | $ 16,163,790.27 |
| FMS | Flinders Mines | -12 | -6 | 26 | 81 | 1.17 | $ 197,552,835.09 |
| ACS | Accent Resources | -13 | -61 | 250 | 600 | 0.035 | $ 14,912,873.06 |
| MGT | Magnetite Mines | -16 | 18 | 490 | 2043 | 0.059 | $ 175,459,561.01 |
| LCY | Legacy Iron Ore | -23 | 10 | 89 | 750 | 0.017 | $ 108,880,554.79 |
WEEKLY WINNERS
BROCKMAN MINING (ASX:BCK) + 138%
On Friday, Chinese-owned Brockman and major miner Mineral Resources (ASX:MIN) formed a JV to bring a 25 million tonnes a year Pilbara iron ore hub into production.
$8.5bn market cap Mineral Resources will fund ~$105m worth of initial development works at the ‘Marillana’ and ‘Ophthalmia’ project mine sites, as well as on the transport corridor and port area.
Th development timeframe is estimated at about three-and-a-half years.
VENTURE MINERALS (ASX:VMS) +34%
Venture is on track to me Australia’s next iron ore miner at its Riley mine in northwest Tasmania.
On April 21 the company was just two weeks from commissioning the plant.
“This timing puts the first iron ore shipment on track for this quarter and puts the company in a strong position to take advantage of the historically high iron ore prices,” Venture Minerals managing director Andrew Radonjic says.
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