worth a little research, page-9

I hate it when you type a nice announcement and fat fingers deletes it on you.

Within 36 hours I have become very keen on this company and while Celica was selling today, I was buying more. This is a keeper on a number of levels. Trying not to rehash Buffet's post, here are my reasons for loading up.

1. Mt Lindsay is obviously the focus at the moment and the results to date are almost at the company maker level. Significant resource of DSO iron ore, tin, magnetite and the excellent Tungsten results released yesterday. The scoping study had great figures, basically a mine with revenues of $109M a year for 7 years based on capital expenditure in the low $200M - that is my kind of investment! The kicker is that those figures were based on the resources pre the announcement yesterday and I think there is more to come. It seems to be also a low cost venture with high quality resources.

2. Tungsten prices look to be on an upward trend, but are far from shabby at the moment.

3. Drilling is continuing and it is almost a foregone conclusion now that the results will continue to keep on rolling in and boosting the companies fortunes.

4. The company is relatively cashed up with, I believe, $10M in hand after the recent SPP. Giving an EV of about $28M.

5. The company would have to be a Chinese takeover target, with the tungsten discovery (China almost has a monopoly) and as Buffet said most other operators in that area are Chinese controlled.

6. the icing are VMS other projects in WA (gold and uranium) and Churchill Dam caught my eye, located to the SW of Olympic Dam and looking a similar resource composition.

7. My charts and the current market depth all point to a significant rerating on the cards. With a little more time to digest, I am looking at 50c in the next month, but at $1 we arent out of ballpark either.