Michael Giordano Labrador Iron Mines Holdings Ltd. LIM-T SELL Nov 18, 2013

Falls low on the radar screen in terms of upside. The Iron ore market is not far from lows. LIM is a high cost producer. They have tight margins. They are periodic shippers. Not the best way in his opinion to play Iron Ore. Doesn’t think TCK.B-T will buy them either, as caller had asked. Prefers TCK.B-T when prices improve. You could look at LIM’s royalty company for the dividend.

(Market Call Minute.) This is a really long-term play. High cost producer and it needs above $105. If iron ore stays at $105-$110, it is good news for the long-term for this company as it will allow them to increase scale and reduce costs.

With most of the development names, it is all about infrastructure, which takes a lot of money to get the iron ore out of the country. In this case, they would have to find a well-financed partner as well as the ability for the prices to stay at a level where it is economically viable. Feels that this company is fighting a very uphill battle.

They are in production now. Because iron ore prices have come off so far and so fast, they are not making money at these levels. There are probably better places to put your money if you want iron ore exposure.

Attractive one to own of the Iron Ore, but the sector is weak. They will all move at the same time. China’s growth is weak and this is an early mover. But he hopes China won’t have a hard landing.

Would like to see a bit more of a basing pattern for the stock. Chart shows it did a V bottom and shot higher. In general, the chart looks quite positive. Broke above its 50 day moving average, which had been in a bit of resistance for the past year. Chart is incredibly optimistic. Materials are generally positive between now and May. The low dollar value does concern him, and you would have to be a risk taker on this.

This is an area to avoid. It is too expensive to mine Iron Ore. It doesn’t seem it is likely for them to solve their problems any time soon and they could shut down.

This is a company that is having all kinds of difficulty. The quality of the iron they are mining has gone down. Recently advised they needed to raise at least $30 million to keep on going. Wouldn’t surprise him if this went bankrupt.

Iron ore has been clobbered in the last year and juniors are almost just looking for M&A activity to bail them out. LIM-T is one of the bigger companies and he would look at it as a hold. It is a little late to bail out.