"Three research reports prepared May 2010 (available web site) suggested Magnetite Range value between $88m and $121m...average for all valuation methods $105m".
Magnetite Range 391mt @ 30%fe Greater than 70% in indicated range Magnetite concentrate specifications to 68%
Using $105m average gives e/v per ton of circa 28 cents.
Applying 28 cents inground value to EMG magnetite deposit only and assuming equivalency with grade: 561mt ( 27.5%) x $0.28 = $157.8M Shares on issue roughly 89m E/V per share $1.77
There are some differences with distance to port being the most obvious and grade slightly lower (EMG) but worth keeping an eye on over the next month or two (site visits end of year). End product almost identical.
By my calcs and assuming no value for other ACS assets ACS is trading at a theoretical discount to the $105m of roughly 56%. On the same basis EMG is trading at/around 80% discount.
JT
EMG Price at posting:
22.9¢ Sentiment: Buy Disclosure: Held
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