Labrador Iron Mines Holdings Ltd. (LIM.TO)…

Labrador Iron Mines Holdings Ltd. (LIM.TO)

0.00

-0.00 (0.00%)

10 watching

HOLD

(Market Call Minute.) Good name but iron ore prices have fallen dramatically and won’t go anywhere until you see a strong bounce in the steel cycle.

HOLD

Very high cost producer so it is highly levered to iron ore prices. Production cost plus commission and transportation is about $110 per ton and iron ore is trading roughly in the $90 range so it is negatively cash flowing and they will have to eat into the cash balance to maintain the mine. There may still be more downside but when it bounces, it will bounce really hard.

DON'T BUY

Not particularly enamoured with this stock. Would prefer Labrador Iron Ore Royalty (LIF.UN-T) because of the weakness of steel demand from China with significant weakness in the price of iron ore. This company is a bit challenged from a profitability perspective.

DON'T BUY

Capital expenditures are quite high in this area. He is not a big fan.

DON'T BUY

Fundamentals are great. Iron ore market feeds the steel market but you have long shipping distances. Also China is slowing.

COMMENT

Extraordinary. Going into production and the market has really come off. Probably the most intriguing one of the whole group. His only caveat is that China is going to grow slower and may not need as much steel production.

COMMENT

Tremendous support at $4.50. It is below the 40 and 50 day moving averages but he would be surprised if it were below its current price. If it starts to post a weekly low below $4 and you own, reduce your holdings.

HOLD

In general, iron ore that has shipped has failed. The driver for it is China, which is slowing. Steel cycle precedes the copper cycle.

COMMENT

There is a lot of interest in iron ore but this area needs a bit of consolidation. There are a bunch of juniors with 43101 reserves. A little bit speculative at this stage.

DON'T BUY

If iron ore stays in this valuation range, they could get into the teens. The problem he has with iron ore right now is if China goes into a slowdown, they have too much steel capacity so the inputs to steel will have some kind of hiccup.

DON'T BUY

Nice project and good management team but he is pretty negative on the global growth story. Iron ore prices are largely driven by Chinese demand and this has likely peaked. Would be cautious.

COMMENT

Not a full producer yet. China imports 46% of the world’s Iron Ore. Sees China spending 4 Trillion dollars on infrastructure in the next 2 years – they will need a lot of steel.

BUY

Iron ore’s outlook looks very good. LIM looks interesting. It is not the most junior so not the most likely to be taken out.

WAIT

Will be producing near term. Iron ore is a crowded space in Canada. Short-term outlook in markets is volatile. But long-term demand for Iron Ore in China is strong. You have to be willing to ride out the volatility. New Millennium and Champion are alternates.

HOLD

Analysts have high teens for the stock price. In a funny position. Build a project but can’t operate it in the winter so they wait for spring before starting. Providing everything starts up OK, you are going to see a bump in the stock. They are taking of expanding (Doubling) the project again. If so, the stock will go higher.

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Labrador Iron Mines Holdings Ltd. (LIM.TO)