The $50k Challenge update 29 – 14/03/2023
Stock Code: EQN
Shares Purchased: 53,700
Share Price: $0.175
Reason for Buying:
Equinox Resources has been in my portfolio since its IPO in late 2021. EQN is an iron ore explorer located in the in the Pilbara region of Western Australia. Its existing Hamersley Iron Ore project has a global Mineral Resource of 343.2Mt at 54.5% Fe. It is also located in a very strategic part of the Pilbara close to existing infrastructure including within 35km of rail infrastructure and only 230km to the nearest port.
As a sector, Iron Ore has struggled due to the way that China has dealt with Covid and shutting down the economy. Recently China has started opening up its economy and has increased its demand for Iron Ore. This has led to the price of Iron Ore increasing and future estimates also increasing.
Combined with this, EQNs management team purchased shares on market throughout 2021-2022 which increases my confidence.
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