This one has been over looked and marketed heavily by AGO Mt webber 32mln tonnes of high qaultiy DSO is 25% of Atlas indicated resource on its first drill results.
I reckon worth 50 cents all day !!
AGO has only drilled in north west corner of tenemants. This could be 80 to 100 mln tonnes of high grade iron ore.
AGO -has a $5 per tonnes value for in ground reserves.i.e market cap-cash divided by indicated resource.
Mt WEBBER IS $150 MLN ie 32mln x's 5 At 60 mln tonnes $300 mln HDN can buy back 30% for 4 times exploration to get to 25mln resource which is probably around 1 mln -hence cost HDN $4 mln to buyback $ 90 mln or 30% of the asset.
Another way to look.
DSO iron ore $65 to 75 per tonne Wodgina costs per tonne $41
If you take a margin of $20 ,3mln tonnes of production pa is worth $18 mln EBITDA to HDN
On a PER of 4 times this resouce is worth $70 mln to HDN Divide by 128 mln shares is worth 54 cents a share just on this asset.
Balline garnett,coal,prospective ground which i believe also have some illminite(often goes with tantalum and the drill rig business all for a current market cap of 22 mln
this one is a sleeper and their is real value here
HDN Price at posting:
13.8¢ Sentiment: Buy Disclosure: Held
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