My first bit of DD I would like to share

Posted by: jgocar24 on September 03, 2008 10:10PM

For the most part, I only read posts, ask questions and occationally draw up scenerios to see what you all think. But today I decided to do some real DD to prove something to myself. At first i was very excited about our chomite finds. After watching the market not even flinch with our finds i started to doubt the true value of chromite. So I started looking up other chromite companys and i came up with Chromex (traded on the UK exchange chx.l) Here is the link to their web site http://www.chromexmining.co.uk/Home....

From what i have read about them. They have approx 24 million tonnes of chromite (total resources). They are a UK based company that operates out of South Africa. They have only been publically listed since 07-09-2006. Now here is the good stuff. They are currently trading at approx 39.00 GPB per share or $73.32 CDN. Their outstanding shares are 84.11 million giving them a market cap of 3.2 Billion GPB or 6.15 billion CDN. In Aug -2008 they were trading as high as 46.00 GBP per share (86.48 CDN). So now we now chromite has value but what about demand???

That brings me to my next link http://www.steelguru.com/news/index/...

There are countless articles to support the growing demand for chromite but i like the above article. Read the whole article but the first sentence is "Chromex to step up chrome ore production amid strong demand ". Also the last paragraph is very interesting "Chinese ferrochromium production from imported ore has started to replace some of the South African exporters’ market share. Some South African producers have even suggested that the government should clamp down on exports of chromium ore." So high demand and the possibility of South African govenment clamping down on chromium exports (sounds good to me). Never mind the electrical shortage in South Africa I have read about from some of the posters here.

So, 99.9% of my doubt about chromite value is gone. We have excellent grades, tonnage(which will probably improve in time) and demand. IMHO we could easlily be at the value of Chromex or better. It seems the North American market does not understand this yet so it makes perfect sense to start promoting it in Europe where they already GET IT! Hope this clears up some doubt for others like myself. But like everybody else says, do you own DD. I'm glad I did. :)

GLTA NOT Longs

JGo