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5-Year High Iron Ore Prices Look to Revitalize Mining Sector

Nachrichtenquelle: PR Newswire (engl.)
05.06.2019, 14:50  |  320   |   |   

FN Media Group Presents Microsmallcap.com Market Commentary

NEW YORK, June 5, 2019 /PRNewswire/ --Mining companies across the industry are looking forward to a strong year as prices for various commodities continue to rise. Industrial metals in particular, such as iron ore, have broken records as prices surged to multi-year-highs. Iron ore miners such as Champion Iron Ltd (TSX:CIA) (OTC:CHPRF), Vale SA (NYSE:VALE), Cleveland-Cliffs Inc (NYSE:CLF), Labrador Iron Ore Royalty Corporation (TSX:LIF) (OTC:LIFZF), and Delrey Metals Corp (OTC:DLRYF) (CSE:DLRY) are just some of the companies well positioned to take advantage of this change in the market.

Many different commodities have seen their prices jump so far in 2019. Precious metals, such as gold, silver, and for a time, palladium, have all seen prices surge in the first quarter. However, few could have guessed that industrial metals have seen some of the largest price spikes so far in the year, with iron ore reigning supreme in this regard.

The Growing Appeal of Iron Ore Miners

Investors have traditionally paid more attention to mining companies that have focused on more prestigious, precious metals, such as gold and silver, or rare, niche minerals. Miners that extract industrial metals, however, haven't enjoyed a similar level of attention, despite the essential role they play in the global economy.

After the tailings dam disaster in Brazil and cyclone-related disruptions in Australia, iron ore will be undersupplied in the near term causing prices to shoot up. This recent turn of events has made iron ore producers far more desirable in the eyes of analysts and investors. While major iron ore miners are expected to benefit from increased prices and the overall market enthusiasm, many less-well-known, small-cap miners are poised to take advantage of this development as well.

Delrey Metals Corp (OTCPK:DLRYF) (CSE:DLRY) holds a unique position in this regard, with their signature Four Corners Project based out of western Newfoundland. While other valuable metals like vanadium and titanium were found at the site, metallurgical samples of highly concentrated iron deposits in the area have peaked the ears of analysts and investors alike.

In conjunction with iron ore's meteoric rise in price, the sampling and future drilling just announced could be a sign of good things to come. Delrey Metals Corp's (DLRYF-DLRY) President and CEO Morgan Good went on to say that the company is "delighted with the recent movement of iron prices to more than $100usd/ton making new 5 year highs. Other companies such as Champion Iron Ltd, and ML Gold with their iron assets in eastern Canada, have both seen a dramatic appreciation to their share prices and valuations of late, which simply cannot be ignored as the iron sector continues heating up."

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