big big open on monday, page-11

Fingers,

I have been assuming that UMC’s market cap will be in the range of 2 to 5 dollars per ton of in ground iron ore as per previous posts and discussions on this forum. However when you mentioned a multiple of 15 dollars per ton, I was somewhat amazed to say the least.

I did a little exercise with Atlas Iron (AGO) as most people would be aware of the company due to television coverage about it a few months back. It currently has a market cap of around $472 million. I’m not sure if that’s fully diluted. AGO has a JORCED resource of 10 and a half million tons high grade iron ore. This gives an inground value of around $44 per ton. Amazing. Although they are somewhat advanced into the mining phase. They claim that they could have around 30 to 40 million tons potentially yet to be discovered so even if you used that figure you would still arrive at $11 per ton. Seems to me that AGO are way over valued by the market or that UMC is way undervalued. Maybe both. Time will tell.

I’m not going to even put up here what UMC could be worth using these figures for fear of being branded a ramper so I’ll leave it up to each individual to work it out if they so desire. The mind boggles with such thoughts. Needless to say that if UMC found itself to be in the same TINY position as AGO with 10.5mt JORC and a stated potential of 30 to 40 mt all up and a market cap of around $472 million then we should have an equivalent share price of approximately $4.72.