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 We seek assets that present value opportunities within resource markets. We believe there are currently strong value opportunities within the iron ore sector. We believe this iron ore opportunity will continue into the foreseeable future.
Canadian and American Iron Ore
Arrowstar is bullish on iron ore. Chinese steel consumers and manufacturers are showing increased interest in iron ore from Canada and the USA. This is driven by strong demand for steel and their desire to diversify from traditional supply sources. On world markets, North American iron ore is regarded favorably for its relatively high iron grades and low levels of impurities.
Table - Monthly Prices for Iron Ore Over 10 Years (China import Iron Ore Fines 62% FE spot (CFR Tianjin port), US Dollars per Metric Ton)
Operations
Our profit objective for property assets generally follows along two strategic paths: joint venturing and profitable divestiture. We look for good joint venturing opportunities for operational development and production of current or new proven commercial mineral deposits. We also seek opportunities for profitable divestiture of strategic assets for cash. Included in the selling model is the option for cash plus participation in the future growth of the asset as either a proportional equity stake or a net smelter royalty.
Asset Acquisition
We are constantly seeking good property assets that present value opportunities within volatile mineral markets. By tapping into a growing network of mineral resource contacts around the globe, we maintain a vigorous research schedule seeking undervalued assets.
Value Analysis
Strategically, we make value decisions for asset acquisitions using two main methodologies: Intrinsic Value Analysis and Relative Value Analysis. Intrinsic Value of the asset is derived by direct analysis of the property's actual known or estimated mineral values. Relative Asset Values are derived by the analysis of surrounding properties; that is their intrinsic value as well as their strategic market value.
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