Ann: FIRB Approves WISCO Investment , page-13

to simon, dell and others,

The concern is that half of the investment by the Chinese depend on drilling results. It's more like WISCO is buying a call option here, the 72 mil injection is option premium, if CXM strikes 2 billion tons, they effectively buying 1.2 billion tons of iron ore with 300 mil investment.

But put that aside:

PV of cash in the bank: 90 million (67 million after 52 million inject next week, 10 million from baotou deal, 26 million a year from now)

Current market cap: 200 million


first 75 million exploration and development costs covered.

first shipment of iron ore expected 4Q 2010

It's only blue sky from now on.

I wouldn't dream about 2 Bt ores, but 500 million value is a very very conservative estimate.