heres what your buying, page-12

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!