New Millennium Iron (stock symbol: NML) is the revised name for New Millennium Capital. This change is appropriate, since the fortunes of the company are now firmly in iron.
New Millennium’s DSO (Direct Shipping Ore) project in Canada is scheduled to start producing ore in 2012, and ramp up production through 2013.
Of course, mining companies commonly give estimated completion dates for their projects even if they haven’t secured funding, and even if the mine has virtually no chance of ever being constructed. Giving a completion schedule is an old trick to increase the stock price. So what makes New Millennium different?
When a mining company signs up a multinational end-user of their product as a partner, this shows that the property has serious potential. It also means that the project will likely be developed with minimum dilution of shares. When Copper Mountain Mining, for example, announced that it was partnering with Mitsubishi, I bought shares immediately and have been very pleased with the result.
New Millennium’s partner is the massive Tata Group (you may be most familiar with Tata Motors, makers of low-cost cars in India). Tata Steel Minerals Canada has acquired 80% of the DSO project, and has an agreement to purchase 100% of its production. In other words, Tata Group’s industrial companies will be using the iron produced by New Millennium, and have a vested interest in seeing the project’s timely completion.
In addition to the DSO project, New Millennium has other nice properties making up the “Taconite Project,” which contains an estimated 9+ billion tonnes of iron ore. In fact, NML’s total projects are so interesting that Tata Steel has acquired 27.1% of the entire company, and has 3 members on the board of directors.
If you buy NML now, I recommend holding it through every conceivable credit crunch or world disaster until about 2017, since this is when all of NML’s current projects are likely to have been completed and producing cash. Any time after 2017, you have my blessing to sell.
NML promises to be a long-term cash flow giant.
____
"Blood, iron and gold promise victory. But even the greatest material resources do not avail, if the human qualities necessary to animate them are lacking."
John Keegan
____
For further information, see: New Millennium Iron's official website.
____
Disclosure
Do not buy stocks, or take this or any other financial advice without doing your own analysis; including, but not limited to: reviewing business models, financial statements, management style and philosophy, recent developments, market macroeconomic analysis, and chart analysis. If you do not know how to do these things, you shouldn't be buying stocks in the first place. Seek the advice of professionals, as appropriate.
____
PS - In case any directors from NML are reading this website...
Please don't do the same stupid s**t that so many other mining companies do after they become successful. That is, once you start raking in the cash, do not immediately look for new acquisitions to spend your money on. With estimated mine lives in the decades, you can afford to wait. Pay out dividends instead. Thank you.
____
