Not more serious. They have to announce anything that can affect the share price when they become aware of it. Sometimes they have to wait confirmation. A trading halt is 2 days, any longer has to be a suspension. These results are coming from Canada where the pelletising was done. If a question has risen from either Paul B here in Perth or Paul V who I believe is in QLD, they have to wait for Canada to clarify.
There is no issue as nobody is buying at present. I have my existing quota. If I buy more I will join the rights offer and take up my entitlement. If I want more still then I will put my hand in for the undersubscription stock. IE pay 0.08 cents instead of 0.1 cent currently.
Either way the stock is greatly undervalued at present. The resource is worth 25 cents per tonne in the ground. With the present downturn in the iron ore price, it might only get 13 cents a tonne in the ground. There is 16.6 billion tonnes in the Greenbush area. This area was picked to drill because it gave the biggest bang for a buck. My estimate is that there is at least another 8 billion tonnes on the lease being both magnetite and DSO haemeitite. This latter has to be confirmed. Thus my value for the deposit is between $200 and 600 mill for a sale price. Or between 1.6 and 5.4 cents a share pre-consolidation. Or 20 to 60 cents a share post consolidation and capital raise.
The 25 cents a tonne is a baseline figure. Only 3 companies can afford to pay this and outlay the associated CAPEX. Only 10 companies can put a deal together.
Consider what CLE is. It is a minnow floundering in the cesspool stockmarket. It is a minnow with a 10 foot 4 x 2 stuck in its mouth. CLE has to strike a deal with the best partner and pass the deposit on before it has to drop the project. The con, as no partner the project will suck it dry until they have forgo the project. The pro being at the more CLE shows that this is a rare valuable project, the easier it will be to get good partner willing to pay and stump up the CAPEX.
Thus to date CLE has shown that a very high class product can be achieved, that the residue is a marketable product, and both can be put to a port and placed on a ship.This pelletising will show that a high quality pellet will be available. And show that this resource is equal to the top three resources worldwide. Which makes a good selling point and demands to be considered.
In light that EUR did not rise when CRML listed, the consolidation must happen and the CR must occur. Change also has to happen.
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