Updated INDIAN IRON ORE - THE BIGGINI've updated this to take...

Updated INDIAN IRON ORE - THE BIGGIN

I've updated this to take into account the current Iron Ore Prices based on the the latest Rio/China contracts of $155/tonne (this is what any valuation report will have to price it at). Spot prices are higher!

200million tonnes (average acreage/tonnage figures of 3 close proximity Indian iron ore companies) at 60%Fe at AUD$155/tonne (contract only prices).
= $18.6 billion. CFR has a 42% exposure through their subsidiary.
= $7.8 billion.

Assuming very roughly estimated production costs/taxes of $4.0 billion leaves $3.5 billion. This equates to an undiluted CFR share price of now

$2.18 per share.

So if the geologists report that is due be released within the next two weeks (as per announcement) comes up with anything that mirrors 200million tonnes at 60%Fe with market prices of $155/tonne and the market gives CFR say a 10% chance of project completion, this equates to

21.87c per share undiluted, or
17.5c diluted (not including employee options)

Obviously everyone has different methods for valuing miners. I'm not a financial advisor and this is just my own interpretation of any upcoming valuation and should NOT be taken as investment advice. DYOR.

CFR - The next Indian Iron-Ore Giant

Go The Elephant!