1) Same as ARH (6 yrs still waiting for finance), ROY, DMA, Citic Sino Midwest, PDY... everyone got 30+ yrs of mag. Fe, everyone is waiting for that $3B CAPEX with IRR around 23% (almost exactly the same as CAP). DMA, Citic Midwest & PDY need railway, so may be that's why mc is low. CAP is NOT more profitable than eg ROY nor ARH (both got infrastructures).
DSO is important for ALL companies, especially with Europe debt crisis.
2) CAP's resource is based on grade 15.5% Fe. If FWL lower cut-off grade to 12%, I'm sure FWL will have more resources.
3) CAP now need $13m to buy out JV partner, $10m for explorations, and $$$ for BFS. If market gets worse, CAP will need to print more shares at low prices.
While FWL will get $2m share placement @ $0.20 from TFA & $20m from TFA to fund further explorations.
LCG Price at posting:
8.3¢ Sentiment: Buy Disclosure: Held
