I was unsure about the margins - by my calculations $10/tonne is a bit at the low end of what they could get as with the bauxite price currently at A$62.48 (see here for details: http://www.metallicaminerals.com.au/) their peer companies would get the folliwng price (based on the opex figures that they ahev announced in their presentations):
In short, I would hope that the margins on this are around 3 times the $10 / tonne you have suggested, but even at $10 a tonne the company will still have ore to a value of A$370 million and a market cap of A$7 million, which is why I think that this is such a good investment.
As I have said before I see Lindian as being like MMI was back when it started and it's market cap was $8 million. I have doubled my money in MMI since the beginning of the year but had I got in when it was $6 million maket cap I could have made 20 times my money.
I got into Lindian at 1.6c and so am already 35% up but I think that this is just the beginning. Long term (post feasibility and mine financing) I see this as pushing a market cap of $160 million but now I see this as undervalued. it should be at $20 million now and I see it getting there well before Christmas - which would put me at 4 times profit.
So - three-bagger by Christmas at the latest from this price IMO.
LIN Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
