CFR 0.00% 0.6¢ cluff resources pacific nl

heres what your buying, page-12

  1. 1,857 Posts.

    Updated INDIAN IRON ORE - THE BIGGIN


    I've updated this to take into account the current Iron Ore Prices based on the the latest Rio/China contracts of $155/tonne (this is what any valuation report will have to price it at). Spot prices are higher!

    Also reduced the tonnage to 200million tonnes at 60%Fe at AUD$155/tonne (contract only price).

    = $18.6 billion. CFR has a 42% exposure through their subsidiary.
    = $7.8 billion.

    Assuming very roughly estimated production costs/taxes of $4.0 billion (higher end) leaves $3.5 billion. This equates to an undiluted CFR share price of now

    $2.18 per share.



    So if the geologists report that is due be released within the next two weeks (as per announcement) comes up with anything that mirrors 200million tonnes at 60%Fe and market prices are at $155/tonne the market could re-value CFR at 10% "acreage value only" of $350million which equates to

    21.87c per share undiluted, or
    17.5c diluted (not including employee options)



    I have included the update since any AusIMM report must use current market price figures and not low end figures as i previously mentioned.

    But remember these are only my own interpretations of upcoming scenarios and should not be taken as investment advice. DYOR.

    Go the Elephant!

    Go The Elephant!


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