I’m not going to attempt to work out the NPV because there’s obviously more drilling to come, but hopefully we’ll have a Measured JORC by year’s end. In addition, there is a huge upside by expanding our exploration.
What I will say is that CIA are producing 14Mtpa in the same region and have a market cap of AUD+$3b. Their Fe grading is lower with higher impurities than CLE, but let’s assume all is equal.
25% of 3b = 750m
At 1.5b fully diluted, CLE would be worth 50¢.
…….and 50¢ is more than my ultra conservative +20¢.
I do believe, Vale being Vale, 14Mtpa is ultra conservative. What we do know is that the area has several successful mines in operation, and that speaks volumes, and the fact that we have a more superior mineral, de risks the project further.
I’m sure you’ll come up with holes in my logic, but at the end of the day I’m up by 44%, so everything you say is noise to me.
CLE - Shaping Up To Be The Next Fortescue Metals Group., page-239
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