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Wildrides' Tip Soars 65% in One Day as Any Old Iron Project Gets a Green Light

By Malcolm Stacey | Thursday 9 November 2017

Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Hello, Share Squeezers. As opposed to gold, silver and diamond mines, there’s something down to earth about iron ore. Gold is more glamorous, but it’s a very speculative area in which to dabble. Whereas iron gives a more secure feeling, somehow. Which brings me to an iron share suggested by this glorious website’s good friend, Wildrides.

This is Zanaga (ZIOC), which operates in the Congo. Not the most stable of countries perhaps, but sometimes one has to speculate to accumulate.

Zanaga's price actually went up 65% yesterday as the company announced an environmental permit from the Congolese government. The company, which owns just short of half of the project, now has to negotiate transport and port facilities for the heavy metal. But given the local government’s co-operation so far, this should not be a problem. Though one never knows with these far flung ventures.

As I understand it, commercial iron is not being produced to any extent in this area, so early days, yet. But the company believes the new permit will help it raise finance to eventually bring iron to the market. According to it, the Zanaga iron ore project is one of the largest iron ore deposits in Africa and has the potential to become a world-class producer. Well, we could all say that, but huge mining bonanzas do happen.

However, this is not a share that I would hold long term. With profits, if any, only coming a long way down the track, the share is probably going to be volatile. So selling on the peaks might be sensible, while keeping a close eye on progress. After Wilders recommended the share to me, it fell rather alarmingly, but I kept my nerve. When the share has settled in a week or so, I may pull out. But I hope for the share price to improve further in the next few days.

And now to join the Punter’s Return.

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