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4.5¢ atlas iron limited

Positive 2nd stage DFS AJM - Great for AGO, page-2

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scrabble1

5,846 Posts.

1792

30/04/18

14:40

Post #: 32770093
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Originally posted by defabs ↑

Excellent news that the AJM 2nd stage DFS was positive.

The mine life will be 13yrs at 440kt per year.
The total gross revenue is expected to be $4.4B (see below)

Even if we were to say 70% of the pit lies within the 1231 tenement, this would mean gross rev of:

$4.4B x 70% = $3.08B

Gross royalties would be:

$3.08B x 5% = $154M or 1.7c per share

A discount rate of 5% per annum would still give total royalty valuation of about 1.2c.

This does not yet include the Southern ridge drilling results that mainly focussed within the 1231 tenement that could increase the life even further of the mine.

View attachment 1080313

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Euroz when calculating the 3.1c valuation for AGO, it gave the royalty revenue a $13m valuation or 0.015c....

I think the AJM royalty alone could be out by close to a factor of 10 as per previous post.

AGO Price at posting: 3.1¢ Sentiment: Buy Disclosure: Held
10 Upvote

4 Great analysis

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