Following on from the posts on the implied value of inground magnetite being 26c a tonne..... From the Cape Lambert announcement after the close of market today confirming payment progress for their 1.56 billion tonne magnetite resource....
...."The Company recently received the first substantive cash payment from MCC of AUD$240 million pursuant to the sale of its 1.56 billion tonne JORC compliant magnetite iron ore resource and associated tenements (“Sale Project”). A second cash payment of AUD$80 million is scheduled to be paid by MCC to the Company on or before Monday, 15 September 2008. The final cash payment of AUD$80 million is to be paid by MCC to Cape Lambert on the grant of a mining lease and related construction approvals in respect of the Sale Project.".......
Maximus's current 20,000m drilling campaign is targeting a 1.7b t to 3b t magnetite resource with a JORC announcement expected late september which at 26c per tonne could value Maximus's magnetite at between $442m and $780m. Cape Lambert had about 22m shares on issue as at 7th June 2001 ( at 20c each I think) and currently has 386m shares on issue. The $400m payment by MCC for the 1.56b t magnetite resource sets an important peer based valuation for inground magnetite. If by the record date, CFE has say 400m shares on issue, it works out about 25c return coming to shareholders and $300m spare cash for the company to buy new projects etc from the sale as they have announced they intend to return to shareholders $100m which is about 25c a share ( if there are 400m shares at the record date.
Maximus has about 153m shares on issue at the moment. Any Maximus shareholders care to estimate the worth per share for Maximus if the Canegrass magnetite is JORC'd at 1.7b t or more?
