Interesting doing some research on other magnetite plays to see what the Mt Bevan deal might be worth to LCY and the Indian/NMDC deal.
In 2010, Lodge Partners (broker) did a research report on Accent Resources (ACS). ACS announced a 391Mt magnetite deposit grading 30% Fe in Feb 2010. The deposit is in the mid-west region of WA.
As part of their broker report, Lodge Partners valued the magnetite project at $106m.
Compare that against LCY's 617Mt at 32% Fe.
In May this year (2011), Southern Cross Equities started coverage on Iron Road Ltd (IRD) with a target of $1.60 per share.
IRD has total inferred of 693Mt @17% Fe, with an indicated portion of a further 541Mt @16.6% Fe.
Southern Cross have valued the magnetite play at $690m after CAPEX etc.
I am no maths genius, but those sort of comparative numbers for similar sized deposits must be close to the mark for what the NMDC deal must come up with.
Especially since Legacy have a better Fe content thatn IRD, albeit that IRD has an exploration target of a further 1.5Bn tonnes, which is not dissimilar to what LCY have put out.
By my calc, the NMDC deal should be able to give a independent valuation by mid to end of July.
Lets hope it comes in like these 2 projects, above $100m value.
(Just my own research)
LCY Price at posting:
11.5¢ Sentiment: None Disclosure: Held
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