Just been crunching some numbers regarding what HAW maybe worth for their 19.6 % share in Mt Bevan.
Using a valuation on what is in hand at the moment, that being 1,170 Mt @ 34.9 % Fe.
Which will yield 530 Mt concentrate @ 67.7% Fe.
* All of the above figures are as quoted by HAW company announcements.
* All of below is IMHO, as what I think it is worth now, as it stand’s, without any further
inclusions ie: iron ore, lithium, copper and nickel.
Lets cut to the chase:
A) 530 Mt of concentrate x 19.6 % = 103.88 Mt.
If we put a value of $5 per ton. 5 x 103.88 Mil = $ 519.4 Mil.
B) The $5 per ton is part of a clear profit, after all capital expenses.
We could expect clear profit to be let’s say $15 per ton x 103.88 Mt = $1558.2 Mil.
C) So IMHO I think that a sum of $400 Mil just for our share in
Mt Bevan is reasonable. That equates to $1.19 per share.
Now who would be our possible buyer?
1)Gina would be a strong contender, with our 19.6 %, will give her 70.6 % stake.
2)LCY (NMDC) They would only offer peanuts, as they have short arms and long pockets.
Maybe if we think outside the square, a suitable buyer could be?
3) FMG, Twiggy might be a contender.
4) BHP,
5) Clive Palmer, he deals in iron ore.
All of this is something to think about.
HAW Price at posting:
9.5¢ Sentiment: Buy Disclosure: Held
