next yt ironore multibagger, page-18

Hey Followme,

I also noticed that that Young Trader has done some interesting research on MXR too. Have you seen this post of his before..?


rch-2008, 09:06 PM

YOUNG_TRADER

Join Date: Feb 2006
Posts: 3,228
Re: MXR - Maximus Resources
MXR


Mkt Structure

Shares
145m
30m 20c 30/6/08 MXRO options
30 20c 30/6/09 MXROA options

Cash $10m + $8m holding in ERO
As well as this MXR are carried for $18m in exlploration by JV's


Cash + ERO backing @12.5c = $18m NTA
Mkt Cap @15c = $22m Current
Target cash + project + asset value of 35c = $50m




Projects
Bird-in-Hand Gold, 100%, South Australia

JORC 421kt's@12g/t Au = 162koz's Au thats very high grade AAR type gold = high profit margins and toll treatable, they are looking at development options

B-I-H is part of a bigger area know as Adelaide hills where MXR have outline multiple prospective deposits, for example Deloraine has had 20g/t Au hits

Recent drilling has indicated that there is much more gold, with the company indicating an new JORC of 200koz's to 250k'oz's

@ $50/oz Au EV current JORC 162koz's = $8m
@ $50/oz Au EV JORC 200-250koz's = $10m-$12.5m





Yandal Gold, 90%, W.A.

JORC 1.1Mt'[email protected]/t Au = 60koz's Au

Somewhat stranded resource and low grade so say EV of $15/oz = $1m




Selllheim Gold, 100%, Qld

No JORC yet, have been waiting for an appropriately qualified Geo to sign off on it given its an "ALLEUVIAL" deposit

Company estimates producing 15k-20k oz's Au p.a. @ $200 AUD oz cash cost, using a $1000 AUD spot = margins of $800oz = $12m - $16m PROFIT p.a.

Now even if they achieve say 1/3rd of this ie $5m Profit p.a. it shos just how much of a cash cow Sellhiem can be and the CAP EX will only be $2m

They expect to be producing by July!




Windimurra Uranium, 100%, W.A.

JORC 19Mt'[email protected]% U = 7.5Mlbs U all from surface to 6m's deep, very very shallow!

Now a usual EV would be $10lb U, but given U sentiment and the fact its W.A. I would say $2lb is more appropriate


@ $2 lb EV = $15m




Nardee- Canegrass/Shepards Ferrovandium + titanium, 100%, W.A.

PMA now WVL is operating the Windimurra FerroVandium operation only 20kms away, its JORC is 150Mt's so any additional FerroVandium found by MXR could act as Feeder Ore for WVL's operation or if large enough may make MXR a takeover target JV etc etc

The company's target here is 160Mt's - 200Mt's @ 50%Fe + 12.5% TiO2 + 1.2% V2O5

Such a target if JORC's would be worth $500m + SO THIS IS THE REAL PROJECT TO WATCH

Intial first pass driling (which was cut short due to WVL demanding the rig) hit 5m, 8m and 16m's @ 38%-44%Fe + 0.5%-1.21%V2O5

They expect a JORC here by OCT



JV projects Olympic Dam type IOCG, 25%-50%, S.A.

Bunch of JV's with MEP, ERO, CRJ, NUP, FDL






Summary
- Cash $10m + ERO $8m = $18m = 12.5c

So at 15c your paying 2.5c for the following value
- BIH and Yandal worth $9m on EV = 6c but based on increased JORC now expected could be $11m - $13.5m = 7.5c-9c
- Sellhiem worth at least $10m given production profile = 7c
- Windimurra U worth $15m = 10c based on really low $2lb EV
- Total Asset and porject value = 35c vs current SP 15c
- Narndee offers huge upside given existing operation ie no Cap Ex etc etc
- $18m worth of free carried exploration by JV's on many different projects covering many commodities


Thoughts? Comments?