FORTESCUE METAL GRP (NASDAQOTH:FSUMF.PK)

Infrastructure is almost complete. First shipment will be in May.
Price of Iron Ore expected to rise, due largely to the 15% increase in demand from China.
Supply is expected to beat demand until 2010.

Great growth company

This new iron ore producer has contracts with several Chinese firms and may end up being a buyout candidate for either one of them or possibly BHP or RIO. Iron ore prices are still climbing and supplies are expected to remain tight for some time.

A development stage Australian mining (principally iron) company. Not currently producing ore--but scheduled to start shipping ore very soon. Needs infrastructure development in the Australian outback. This one has been ultra-volatile (like a biotech on steroids), but I think it is a great speculative play on the global need for raw materials. If the company succeeds, it could be a ten bagger.

I hope I caught it right today at 6.94 first shipment being loaded!

player in iron ore

high risk, high reward play.
Fortescue metals - CEO + Chairman has a poor past record, but every step so far has been a winner.

Very tight first delivery date of mid May with a lot to do in key areas esp rail link to port.

Expect this stock to breakout to $10-$15 once they make their first shipment to China in May. With the new infrastructure in place, this company is ready to compete against the big boys.

Thug Life

This stock should do well. I am long and look to buy more on dips.

Here are three things that make me nervous. The founding father, Andrew Forrest, has a bit of a reputation as a clever penny stock peddler. The infrastructure that FSUMF is building is all new and it would be a small miracle if it all works as planned from day one. Iron prices have just spiked and could collapse in the face of the softening world economy.

If the ore deposits FSUMF has “tenement” rights to are as large and rich as stated, the future looks very bright indeed, if not this year then the next or the year after, especially with the close proximity to the worlds largest steel customers.

Is a china play. Will keep growing strong if you stick with it.

Fortescue is almost finished with its major capital outlays. It just committed to selling an approximate $2 Billion stake to a Chinese investment which the company can use to pay down some major portion of debt. Fortescue will be starting major income flows by mid-2008.

This is now the third biggest iron ore company after Billiton and Rio Tinto. While BHP is trying to acquire Rio, Fortescue is moving ahead to complete its production in May of this year. With outstanding developments happing , this stock will probably be at 40-50 a share.

This compnay is a strong buy for many reasons. Although I know they are unknown and unproven, which makes them risky, this is a solid company with strong, experienced leadership. Just yesterday they announced that it's Solomon project contained 70% more Iron Ore than perviously estimated. They are sticking to the target production date of May 2008 and I believe will blow all estimates out of the water. Did I mention that they are a strong buyout candidate?

Brand new iron ore mine in Australia fantastic facility close to Asia. Billions of tons of reservres this mine will run for the nest 150 years. This is one to buy and forget. Will keep you rich in your old age!

This company may not garner a lot of attention because it trades on the pink sheets. What people forget is that (SOX) regulations often lead thinly traded foriegn stocks from the major boards, because of the cost of listing. FSUMF is one of those companies. An Australian mining company that has been building infrastructure, literally from the ground up. Their company is in the process of completing the development of Iron Ore mines in Australia, along with laying the railroad system and the harbor loading docks that will allow them to mine, transport, and deliver iron ore around the world.

Now for the good part. They are focused on the Chinese market and have all of their 2008 iron ore production presold (first delivery date May 2008). They are working on selling 2009 anticipated iron ore and will continue to grow at a rapid pace, once additional mines come on line. Though they have yet to pull any iron ore from the ground, they are poised to be the third largest iron mining company in Australia, second if the BHP Rio Tinto merger goes through. Chalco is considering a stake in FSUMF because of concern over increased cost of iron for the Chinese.

Clearly a risky company now, because they havent delivered yet, but one that will rocket in the near term should things continue to go as planned.

Go long in the real life IRA. The amount iron deposits they say they have are huge. Either this will be a $50 stock in the longterm or BHP will eat them up. I like the potenial upside of this one.