Pantera Minerals (ASXFE) is an early stage explorer about to drill for high grade iron ore right next to billion dollar iron ore producer Mt Gibson Iron (and all their infrastructure).
PFE just listed on the ASX this morning after raising $7.0M at 20c. PFE has a market cap of $13.95M (at 20c, undiluted), with an enterprise value of ~ $6.95M. trading @ 0.40c Today…
Its ticking all the boxers, with eight good reasons to invest and sounds like it would make for a good trade in the near future if not now.
Here is a quick summary – we will dive deeper into each point further down:
First drilling in the next few months – could drive a re-rating in the stock
High grade hematite (iron ore) – rock chip samples of 55% to 68% – these are good early signs. How much and how high grade will depend on upcoming drilling. High grades are good for beneficiation and direct shipping.
Right next to export facilities – no stranded deposit. 5km from deep water port and $1BN capped producer Mt Gibson Iron.
Takeover target? We think so, if PFE can successfully identify a high quality iron ore resource.
Iron ore is trading around ten year highs – increased likelihood of mergers and acquisitions during commodity super cycle.
Tight capital structure and low EV – Enterprise Value of $6.95M on ASX listing, with a big portion of stock in escrow (the majority of our holding is escrowed for 2 years).
One of very few Indigenous CEOs on the ASX -PFE has a strong relationship with the traditional land owners and has ESG credentials.
Ex Mt Gibson Exploration manager – he must know a good iron ore project when he sees one.