Key points from Grange broker's report and presentation on Friday 30/10:
-AZR will be mining at its Koolan Project by mid 2005
-25 mt high grade iron ore available to mine (independently verified consultant estimate) and $35m market cap compares favourably to Portman (155mt to mine, $260m market cap), Lynas (40mt, $150m market cap) and Mt Gibson (27mt, $60m market cap)
-High grade ore (67%) compares favourably to North's (57%), BHP's (63% and 59% for different site's) and several other sites; only Carajas (67.2%) has a higher grade.
-Including dilution, using an estimate of 20 mt mineable reserve, and a 10% discount rate, Grange prices AZR at 21c a share. At a 35 mt estimate, the estimate increases to 35c a share.
On the recent retrace, I will be buying up and holding for a couple years. This appears to be a very strong buy to me.
Feedback appreciated!!!
AZR Price at posting:
0.0¢ Sentiment: None Disclosure: Held
