cfe presents a compelling value proposition

Market cap: $356m

Cash and Receivables: $179m

Debt: Nil

Listed Equities at Market Value: $85m

Value that the market is placing of ALL the other assets: $92m

This includes Marampa, Sappes, Pinnacle, Lady Loretta, Cape Lambert South, and Leichardt.

Sappes was estimated at a value of 50m by the copperco receiver. Since then the price of gold has gone bananas and TS should be easily able to sell it for 50m.

Marampa is similar in size and scope to EQX except Marampa is further advanced. The market cap of EQX is 300m. I would be very surprised if TS is not able to flick Marampa for at least 400m given his track record.

CFE paid 28m for a 28% stake in Pinnacle some time ago (via a convertible note). Since then, West African Iron Ore assets has appreciated significantly (see SDL, EQX, DMC shareprices over the last 2 years). I think I am being pretty conservative placing a value of 80m on CFE's 37% stake in pinnacle. With the drilling program currently being carried out, pinnacle could be worth substantially more.

Lady Loretta. CFE have 25% of Lady Loretta. The total Mineral Resource for Lady Loretta is 13.6Mt at 17% Zn, 5.8% Pb and 96 g/t Ag. Therefore, just the silver alone comprises over 46m ounces.

Cape Lambert South. The chinese are interested in CLS.

Leichardt: CFE paid 7.7m for the asset. Expect it to be worth north of 20m when CFE sell it.


So for $92m, you can buy the following:

Marampa = 400m
Sappes = 50m
Pinnacle =80m
Lady Loretta = 10m
Leichardt = 20m
Cape Lam South = 20m

That is $580m worth of assets selling for only $92m.

I would say GL to all holders but we don't need it. The market is starting to wake up to the compelling value that CFE presents at these prices.