comparative value

Ok guys, lets try and put pen to paper and nut out some potential values...

What we know:

MGX sold 200mt magnetite to Sinom (Chinese) for $50mn 18months or so ago.

Now, since then, iron ore prices have risen 13% and 65%. So, they have risen: 1*1.13*1.65 = 1.8645 = 86.45%.

And thats long-term contract prices. Spot prices have in fact increased 150%+.

So for simplicity, lets just say FE prices have increased 1005 since MGX/Sinom next door sale.


Now, judging by strike length comparison of MGX deposit (sold to sinom) and ACS Mount Gibson deposit, it is fair to suggest that ACS should very easily firm up AT LEAST what MGX did.

After all, MGX strike lenght = 8km VS ACS strike length = 14km

So, been conservative, we say that DESPIT HAVING TWICE THE STRIKE LENGTH, ACS get at least 200mt with FE prices 100% above MGX/Sinom $50mn sale price.


So, ACS get: $50mn (MGX/Sinom) * 2 (100% increase in FE prices) = $100mn

AND, $100mn = $1 Share Price [100mn shares on issue]