Fortescue shares have rocketed after the company announced it had discovered a massive iron ore deposit in Western Australia's Pilbara region.
The miner's price soared $12.97 to $64.50 at 13:48PM after revealing the one billion tonne discovery in the Serenity area, which forms the western third of its Solomon Project area.
went from $51.50 to $55 (current SP)
not allowing for the price rise prior to the announcement..........
so it dropped back 8% after a big rush up to $64
$3.50 a share rise ......1 billion resource
take off 2/3 for FDL's share amount
means it rose $1.16 per share apples for apples
then divide
400 mill (resource est) by 1 bill (FMG est)
40% or
46c a share.............makes 8c look cheap
But yes hasn't been proven I know
..........................................
Then using the $3.50 FMG rose
Puts the value of the 1 bill resource at
$1,050,000,000 or $1.05 billion
So far FDL's (conceptual resource)is valued at $28,000,000 based on same formula
yes......... not a proven resource........yet
so when it is proven in the next coupla months
Lets say 400 mill mt
resource should be $400,000,000
or about 50c minimum per share.
And thats before it goes into production.
Just my back of envelope calculations so shoot me down if u wish...........just trying to see the potential upside in SP once resource is proven.
Could be a 625% rise minimum in SP based on todays 8c now and 50c in a coupla months.
Downside back to 1c
Worth a punt without any doubt imo.
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