This JES' investment in massive mine in Xinjiang, China has a couple of risk factors:
1. Political risk -- Xinjiang is a restive region.
2. Legal risk -- how transparent & water-tight are the laws there?
3. Financing risk -- If the mine is so huge, the funds required are also big if you want to move at a reasonably fast pace. Can these guys raise the funding?
About 12 cents : before announcing mine report on US$500 b of resources.
About 19.5 cents: after announcing.
Now 15.4 cents : after profit taking and after some hard questions were asked that only time can answer.
When is the IPO of MineRiver? What sort of valuation will it achieve? When will mining rights be granted? How much does it cost to extract and transport the magnesium oxide as fertiliser to customers? Many more questions.
JES (15.2 cents) has become a trader's stock -- the upward and downward movement every other day is an opportunity for the nimble. For FA, it's not clear where the merits lie -- beyond the fact that the resources in the Xinjiang mine are massive. World's biggest magnesium mine, probably.
The Board of Directors of JES International Holdings Limited (the “Company” together with its subsidiaries, the “Group”) is pleased to announce that, through its wholly owned subsidiaries, Jiangsu New East Marine Engineering Co., Ltd. and Jiangsu Eastern Heavy Industry Co., Ltd., the Group has secured shipbuilding contracts for the construction of 4 Newcastlemax and 1 Post-panamax bulk carriers with a total contract value of up to US$240.0 million.
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