The Junior ‘Sleeper’ in the Booming Iron Ore Market
You would think that there wouldn’t be junior iron ore-magnetite “sleepers” out there on the ASX, such has been the impact of China’s V-shaped economic recovery on prices for the key steelmaking raw materials in recent months.
But while the market is switched on to what the price spike to levels twice what Canberra’s treasury boffins thought would be the case means for the Pilbara producers like Rio Tinto, BHP and Fortescue, it has yet to act on what it means for the juniors.
That is bound to change the longer prices and demand remain at elevated levels and means that juniors holding potential development projects with street cred are in line for greater interest from investors looking for leveraged exposure to the upside.
One of the junior sleepers out there is Magnetite Mines (ASX:MGT), which last traded at the princely price of 0.3c a share for a market cap of $6.5m.
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