Update: Black Iron Receives Mine Allotment Certificate

| About: Black Iron (BKIRF)


Black Iron got awarded the Mine Allotment Certificate from the central government in Kiev.

I’m surprised the company continues to fire on all cylinders to push the project forward and I certainly didn’t expect this certificate this soon.

Unfortunately, any investment in Ukraine will be dominated by the escalating armed conflict in the country, and stability is needed to void becoming a value trap.

Black Iron (OTC:BKIRF) has received its Mine Allotment Certificate from the central government in Ukraine, which is a major step forward to obtain all necessary approvals to start the construction activities on its Shymanivske iron ore project in Ukraine. According to the company, this certificate is an indication that the central government expects the project to effectively be built in the near future. More importantly, the award of a mining allotment certificate also means the planned open pit shell has been approved, which could be an important step forward.

I'm (positively) surprised to see Black Iron is still going full-speed ahead with the development of the Symanivske project as I wouldn't have blamed the management for taking things more slowly as it doesn't look like the armed conflict in the east will go away soon. Even though the company emphasizes it's business as usual in the other parts of Ukraine, seeing that the central government is indeed continuing its day to day business is quite refreshing and reassuring.

Despite this update, I will stay on the sidelines until a clearer picture about how the armed conflict in the east will be ended arises. I commend and applaud the Black Iron management team for pushing this project ahead - it shows a lot of commitment - but the geopolitical situation scares me right now. The project is quite good, but as I explained in my previous article, it is risky as long as the unrest in the country remains at an elevated level. A stable and reliable political situation is imperative for the full value of Black Iron to surface otherwise this company might forever be a so-called 'value trap'.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.