Valuation
Ironbark is currently trading at $0.055 for a market capitalisation of just $20.3 million. This puts a valuation on its mineral assets of $18.2 million after deducting the June Quarterly cash balance of $2.1 million. The Enterprise Valuation of Citronen is $17.2 million (after allowing $1 million for other assets), or $0.0015 per pound of JORC compliant zinc equivalent resource.
Glencore is a long term investor and has provided Ironbark Zinc with an undrawn US$50 million equity funding facility that converts at $0.42 and $0.50 per share, and assumes an Enterprise Valuation of $0.012 - $0.014 per pound of zinc equivalent. This long term valuation is supported by Nyrstar with major funding support in 2010 at $0.35 per share
The EV/Zinc Equivalent is well below the Glencore funded and developed Perkoa Project owned by Blackthorn Resource with an Enterprise Valuation of $0.0.049 per pound.
By comparison, Ironbark Zinc is evaluating the annualised production of 408,500,000 pounds of zinc and 105,700,000 pounds of lead for a mine life of 14 years. The current Enterprise Valuation at Citronen is only 3.06% of that accorded to zinc resources at Perkoa. Investors should note that the current market valuation:
- Significantly undervalues JORC resources at Citronen
- Discounts the upside potential of the exploration target of 302Mt to 347Mt @ 4.4 to 5.0% zinc, along strike at Citronen. Perkoa does not have similar exploration upside
- Discounts the strategic value of the shareholder relationships established with Glencore and Nyrstar
- Discounts the potential inherent in the MOU executed with China Nonferrous to majority fund the design and construction of the process plant at Citronen
- Discounts the strategic potential inherent in the $50 million undrawn credit line provided by Glencore
- Discounts the upside potential within the Australian exploration portfolio
Applying an Enterprise Valuation of $0.049 per pound to 11 billion pounds of JORC compliant zinc and lead resources at Citronen equates to a pre-production EV of US$539 million or $1.46 per share on un-diluted capital. This does not take into account exploration potential or make allowance for a rise in zinc prices.
The obvious catalyst here is completion, approval and funding of the EPC by China Nonferrous to build the mine and process plant.
WHAT WHAT WHAT ?????? $1.46 ?????? Are you "SIRIUS" ???
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ValuationIronbark is currently trading at $0.055 for a market...
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0.2¢ |
Change
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Mkt cap ! $3.667M |
Open | High | Low | Value | Volume |
0.2¢ | 0.2¢ | 0.2¢ | $367 | 183.3K |
Buyers (Bids)
No. | Vol. | Price($) |
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24 | 28474995 | 0.2¢ |
Sellers (Offers)
Price($) | Vol. | No. |
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0.3¢ | 6070354 | 9 |
View Market Depth
No. | Vol. | Price($) |
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22 | 22174995 | 0.002 |
11 | 12100487 | 0.001 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
0 | 0 | 0.000 |
Price($) | Vol. | No. |
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0.003 | 6070354 | 9 |
0.004 | 33681459 | 20 |
0.005 | 2500000 | 4 |
0.006 | 4800000 | 2 |
0.007 | 715300 | 3 |
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