CZR "FOMO", page-32

You can add another $66,000,000 to the Free Cash Flow of Robe Mesa (more than the market cap of the company).*

Prices for iron ore cargoes with a 63.5% iron ore content for delivery in Tianjin rose to above $136 per tonne in November, the highest since May 2022, as expectations of robust demand coincided with risks to supply. Purchasing activity in the world’s top consumer, China, remained underpinned by the bullish backdrop in its steel-heavy infrastructure sector. Beijing stated it would accelerate the issuance of bonds after accommodating for an additional CNY 1 trillion in debt to target infrastructure and manufacturing projects. The developments magnify previous signals from lenders, miners, and metallurgists that infrastructure expenditure in China is expected to offset the debt crisis for the residential construction sector, maintaining active purchasing activity for iron ore inputs. In the meantime, giant miner BHP approved industrial action that is set to suspend activity for around 400 train drivers in Australia, potentially capping exports from the country.


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On the 10th October 2023 the company released the DFS for the Robe Mesa Project:The report said:- At an assumed base case of Iron Ore @ $90, this would equate to free cash flow of $419,000,000 (million)At the time, the Iron Ore price was @ $117, the DFS said this would equte to free cash flow of $1,262,000,000 (billion)Today the Iron Ore price is $131So, what we know is a $27 tonne movement in the Iron Ore Price between $90 and $117 (+$27 increase) resulted in free cashflow improving by $843,000,000 (million)Therefor, we can assume every $1 dollar movement in the Iron Ore price = $31,000,000 (million) upgrade to the free cash flow $1,262,000,000 - $419,000,000 = $843,000,000 / $27 Increase = $31,000,000In the last week, the Iron Spot Price has increased by a further $14 from the DFS best case of $117.This equates to an improves cash flow of $14 (increase in Iron Price) x $31,000,000 (see above) = $434,000,000The Value of the Project Free Cash Flow is now @ $1,262,000,000 + $434,000,000 = $1,699,000,000 (billion)

The Market Cap of CZR is $53,000,000 (million)

Based on the overnight Iron Ore price, you can add an extra $66,000,000 (22/11) and another $66,000,000 (23/11/) to the free cash flow of the Robe Mesa Project....

Project Free Cash Flow
$1,262,000,000 @ $117 (as per DFS)
$419,000,000 @ $131
$66,000,000 @ $ 133 (22/11)
$66,000,000 @ $135 (23/11)

Total:- $1,751,000,000