hitched...In one announcement, Fortitude went from an asset...

hitched...

In one announcement, Fortitude went from an asset rich, yet cash poor entity, to a fully funded minerals entity.

The previous carrying values on Fortitude, discounted for funding "risk", are now free carried till production real propositions.

Compare to FMG with 300m-1,000m tonnes of Fe in the ground...but now way of funding the road to production...when the monet came, the price rosein expectations of the reality of the plans.

The same will happen to the Fortitude component of the mix.

Make no mistake, these are significant Cu/Au assets...all they needed was the means to finance.

We now have this.

Fortitude was never factored in...now it is so far undervalued it is embarrasing.

At a bare minimum...even just briinging CdB and Catabola up to JORC compliant inferred resources might cost $20...then to bring CdB to production might cost another $300m.

This will be paid for by Pensador...should this expenditure not be included in forward value models?

CdB at 51mt at 2.14% Cu (they actually got 7mt of non-JORC measured resource), equates to some 1mt of shallow, high grade Cu. We do not have the details of just how robust this will be, but numbers quoting 20,000 Cu production per year at $1 per pound costs have been thrown about.

At Cu US$3.50 per pound and US$2.50 profit (ie US$1/pound costs), we are talking about net profits in the range of $US110m per year

Even if we only take the 7.1mt @ 2.14% Cu, the above production will last some 7.5 years.

The above scenario is not a major scale operation...in fact appears based on the treatment of just 1mt of ore per year. Of course, should they in fact prove up the prvious inferred resource of 51mt @ 2.14%, then we are likely to be looking at a significant upgrade to the production plans, say as much as 5mt/year ore treated?

What ever the result, there is real value here...measurable...and in the current Cu environment, likely to improve before it gets worse.

Plenty of peers to compare to.

CVI has 39.5% of Fortitude and I believe they still have the capacity to increase this...although this will be one of my questions to Smyth.

Remember, the above numbers involved just one project...CdB...Catabola may well be of similar size. They have 5 key projects along the western seaboard...I may well have greatly underestimated the value here.

Have not even touched on Gold...or ther many other minerals assets yet.

In case you missed it, Fortitude is a company maker in its own right for CVI...above and beyond all else. The value created here will be central to their use of the claw-back facility in my view.

Cheers!