Investors check out the following reports below & tell me what I am missing ?
Why is a company with a HUGE IRON ORE deposit so undervalued ?
SRK has confirmed negotiations with a group led by a major international mining company regarding the 100% sale of its two flagship iron ore projects for total consideration of US$650m (circa US$450m for SRK’s 68.15% interest).
Patersons report : Is US$450m enough? While we believe the potential sale appears reasonable and is worthy of board consideration, we recognise that:
1) the proposed valuation is well below our de-risked NPV of $6.23/share;
2) our upside case of $4.36/share implies an EV/Resource value of A$3.60/t (based on SRKs 68.15% interest in 172Mt) which is considerably lower than the sector average of A$9.20/t;
3) if a positive outcome from iron ore price negotiations eventuates, we question whether the proposed price
of US$650m would need to reflect this.
BBY report : value SRK at $5.85 per share.
Tollhurst report : Our base case assumptions produce a valuation of $4.26 pershare. However, if we assume equity is raised at our price target following BFS completion, our valuation increases to $7.30 per share.
All the reports that are available have SRK as a buy !
Might go & play a round of golf !
Feedback would be appreciated.
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Last
3.1¢ |
Change
-0.003(8.82%) |
Mkt cap ! $8.796M |
Open | High | Low | Value | Volume |
3.2¢ | 3.2¢ | 3.1¢ | $443 | 13.94K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 50000 | 3.1¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
3.4¢ | 10000 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 50000 | 0.031 |
3 | 171080 | 0.030 |
1 | 500000 | 0.029 |
1 | 210000 | 0.028 |
2 | 192465 | 0.027 |
Price($) | Vol. | No. |
---|---|---|
0.034 | 10000 | 1 |
0.035 | 528769 | 2 |
0.040 | 100 | 1 |
0.042 | 136007 | 1 |
0.044 | 20000 | 1 |
Last trade - 11.57am 26/08/2024 (20 minute delay) ? |
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