a good stock rises on a down day, page-2

Further to my previous post, the EV is trading at $2.87 per tonne of hemitite.

Convention is to usually use $10pt.

$2.87 thus offers substantial upside

BUT

The real kicker will be the upgrades. The company say there is potential to increase the hemitite portion to 135mt. At 135mt, the SP would be $4/5 (off the top of my head) with the same EV ratio as above.

800mt magnetite estime not included and nothing to account for EXISTING RAIL and INFRASTRUCTURE




DMM:

33mt JORC at 55%

33mt*0.5 = 18.15mt


Shares on Issue: 60,000,000 [36mn FPO; 24mn options]
Share Price: $0.87
Mkt Cap: 60mn * 0.87 = $52.2mn


EV: $52.2mn/18.15
= 2.87



HAS BUY RECO FROM INTERSUISSE VERY RECENTLY



IMO, NO BRAINER at these levels


Was at $1.105 only 2 days ago! They are a few days late on the Scoping Study so some traders are out having bought on credit and cant put up the capital for the transaction to clear