Compared to IOH - RCL IO Deal Worth $1 Max!!

A couple of days ago Iron Ore Holdings was worth $140M.

For that you got a 1.6B tonne JORC resource, a 269M tonne reserve and $50M in the bank!
A 15 year 5M tonne pa mine is to start production this year with mine gate sale agreements already in place!
A $30M feasibility study has just been completed to add a further $8Mtpa in 2016 .

Yesterday BC Iron launched a take over offer for $256M.

The BC offer obviously includes a takeover premium for control. For comparison purposes for Rand shareholders, if the RCL deal goes through we would loose control of the company to RCL, so we should exclude the premium. So I think $140M is a better figure for comparison to the Liberia RCL deal.

Also - there are NO reserves, NO resources, NO JORC, NO cash, NO feasibility study, No near completed infrastructure, and NO imminent cash flow. All this would have an influence on the price so subtract the $50M cash to get to $90M, and discount this by a generous(ie too low) 90% to reflect the comparative lack of progress - leaving a valuation of $9M

At this level of resource existing shareholders would be left with less than 10% of the company(ie. RCL would be issued with shares worth 90% of the company) so the valuation should be reduced by a further 90% - or down to $900k.

Now we must also factor in country risk, especially given the recent Ebola issues, this I believe should be a discount of a minimum 50%. But for ease of calculation lets just use 50% and call it "NOT fair" but possibly reasonable to non-associated shareholders.

That's a absolute top-side valuation for the dirt in Liberia of $450k..........or 120k TBR shares - nothing more.

...............but it's not really worth anything is it. It's taken over 3 years to find nothing, so a further 99.999% reduction is justified.

Can we have some change please Mr Billis

http://www.businessnews.com.au/article/BC-Iron-swoops-on-Iron-Ore-Holdings
http://iohpublic.powercreations.com.au/images/ioh---vaiyuluuqu.pdf

PS. Remember the term "not fair but reasonable to non-associated shareholders" as this may well be the term that is used by the experts in their reports if this should ever progress that far.