half-century potential for mineral sand mine, page-6

I am trying to get an idea of what WIM150 may be worth to AZC shareholders, so I have done a very rough calculation based on the value applied to AZC's sale of 35% of Mindarie project to Orient Zirconic. The sale price of $11.5m indicates a total value for Mindarie of approx $30m.

According to AZC's resource estimates in 2008, Mindarie had a measured & inferred resource of approx 170Mt @ 3.1-3.6% HM.

WIM150 by comparison has a target size of 750Mt at approx 3.9% HM. This is according to AZC presentation and a project summary from 'Exploration Management Services' (Refer to URL below)

http://www.explorems.com.au/projects/wim150/

This would indicate to me that WIM150 is potentially worth upwards of $200m. This ignores the value of plant & equipment in the Mindarie sale, but I would think the depreciated value at the end of mine life is not worth considering. This places a much greater value on the WIM150 asset than APG received from Orient for their %20 share(7.5mil)

At current estimates. The loan facility from DCM was about $65m at Dec 2012, and by the end of 2013, operating costs will add about another $15m ($10m operating cash flow + $5m in interest on loan from DCM)

As I stated previously, by the time the BFS is completed and regulatory approvals finalised, AZC could have debt of $80-100m.

My simple maths means that our 80% share could be worth $80m+,

With 1.5B shares on issue, $80m equates to about 5c a share. Maybe I can double my money on the shares I bought for 2.7c!!

My valuation may be complete rubbish, but I am more than happy for someone to do more research and put a more accurate figure on it.

Cheers Dave