LCG 0.00% 6.0¢ living cities development group limited

a mkt cap comparison its cheapppppp

  1. 7,117 Posts.
    Thought I might do a comparison of FWL against 3 others, AXO, IDO and GRR


    FWL
    Share Structure 55m shares + 30m 25c 1/6/2010 Options
    Mkt Cap @35c = $19.25m undiluted or $29.75m fully diluted

    Project
    NPV = $1 Billion based on EBIT of $75m p.a. for 30yrs

    CAP EX = $330m including a 20% blow out

    Infrastructure = Excellent on the main highway to the main Gerladton Port, major gas pipeline runs through the deposit, town of Yalgoo only 14kms down the major highway

    Ore = Good although low grade, its coarse and testing has shown "This sample produced a very good iron recovery coupled with a low silica return at a coarse (and therefore cost effective) grind size"


    AXO
    Share Structure 72m shares + 11m 20c 20/10/2007 + 16m in the money unlisted opies

    Mkt Cap @90c = $65m undiluted or $90m fully diluted

    Project
    NPV = $500m Ferro Vanadium production

    CAP EX = $500m

    Infrastructure = Avg requires alot of Infra

    Ore = Good for Vanadium production, but unsure how easy it will be to produce Ferro Vandium



    IDO
    Share Structure 80m shares

    Mkt Cap @$1.25c = $100m fully diluted

    Project 70% Only!!
    NPV = $800m Pig Iron like FWL!

    CAP EX = $750m

    Infrastructure = Poor Its in Indonesia, and given huge Cap Ex I'd say Poor!

    Ore = Poor Its an Iron SANDS deposit grading 10% Fe so will be difficult IMO to beneficate etc



    GRR
    Share Structure 110m shares

    Mkt Cap @$2.10 = $240m fully diluted

    Project70% Only!!
    NPV = Could be huge $2Billion ? Iron Pelletss

    CAP EX = $1.5Billion

    Infrastructure = Poor needs to build power plant, then build power lines, needs to build a slurry pipe line that goes 100kms, needs to dredge the port to make it deep water etc, clearly alot of work here, but rewards could be exceptional

    Ore = Excellent for Iron Pellet production, the high grade ore keeps operating costs down




    So the point I'm trying to make, is aguably GRR is the most advanced and most likely to get into production the soonest, IDO seems risky and requires a large CAP EX, AXO seems cheap when compared to PMA and GRR but I don't know what the operationl risk is with beneficating Ferro Vanadium


    Bottom line at $20m FWL is wayyy to cheap! even $30m fully diluted is too cheap, this peer comparison would suggest $50m to begin with and then eventually up to $100m as the project risk reduced
 
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