ago 1/4ly looks positive for ajm, page-3

TaneNui,

Here is a Mt Webber valuation I posted a couple of months ago:

Mt Webber - March 26th 2012 price of $5.50/t paid for adjoining Iron Ore asset implying valuation of AJM stake at over $A65m or 14.5 cps (per BCP Equities). Note this is sale value, so cash up front of $A65m or 14.5 cps.

If AJM keep our stake in Mt Webber and we begin production this year the estimated value is within the range of $0.17-$0.185 per share. BCP Equities have a valuation of $0.17 per share - the link for this broker analysis report is below.

However, Patersons Securities had a valuation of $0.185 from memory (I cannot find the website link but have it saved on my PC which I will confirm in a future post (on iPhone & not home ATM).

Either way the current share price offers great value no matter if you prefer to use BCP Equities or Patersons Securities, as you are essentially paying for AJM's stake in Mt Webber only (current share prize =$0.17, valuation is approx $0.17-$0.18 per share). So essentually if you buy now your only paying for AJM's My Webber asset but you still get the upside of coal, lithium, mining services and other assets!

Quite a reasonable buy if you believe the forestry permit for Tabalong Coal is just around the corner, as I believe it is. Also Mt Webber is essential for Atlas Iron to achieve their production rampup. You only need to look at some resent presentations from AGO to support this argument (also Mt Webber has one if the largest, if not the largest ore reserves in Horizon One).

http://alturamining.com/files/reports/2012%2006%2013%20BCP%20Equities%20Research%20Report.pdf