Near record high Chinese Iron Ore imports

Iron Ore has gone up 34% since February, with news from China only adding fuel to the fire. Finding the best penny stock to profit off of this needs a lot of pieces to be in place. Iron Ore is complex, and mining companies are even more so. That’s why we’re making it easy by doing the research for you. Grade is very important, because it fetches a premium to spot. This means more money to the company and ultimately to you. So in order to get the absolute best Iron Ore penny stock it needs to be high grade, on it’s way to production, and the stock needs to be very cheap.

Iron Ore price

The news from China is that the month of June represented nearly a record high level of Iron Ore imports by China. The bulk of the imports came from Australia, however as we know already, China and Australia haven’t been getting a long lately. As a result, China has been looking for competing sources of Iron Ore. This represents an opportunity.

So how do we profit off of this?

We remain strongly bullish on Black Iron Inc (TSX:BKI), as they hold an ultra-high-grade Iron Ore deposit containing 68% (vs 62% spot) pellet feed product, are close to production, and their stock is trading at a very very cheap price right now. We think this is one of the best Iron Ore penny stocks one can buy on the TSXV right now.

Since our report on BKI, the stock has gone up fro 10 c to over 16 c. This is a gain north of 60%, going as high as 95%, and there is good reason to believe this will continue for some time. This is an excellent time to buy this Iron Ore play.

Source: S&P – Chinese iron ore imports close to record high in June on strong steel output.

Here is the link to the original report (dated July 6th).