ev $25m - $60m cash and free carried for 4mtpa

I've been enjoying an enforced HC holiday for the last 7 days, but I'm back today.

Was lucky enough to buy this on Tuesday, but now it is time to point out a few obvious details.

Current share price around 40c gives an Enterprise Value of approximately $25m (this takes into account the 68M shares plus options converted into shares - minus the current cash and options cash).

So what do we get for $25M.... well, the deal announced on Tuesday allows for about $60M in cash to CAP and free carried into 4mtpa magnetite iron ore revenue (20% of 20mtpa at no cost to CAP). On top of this, they have 20% of a very large Coal play in QLD (next to a railway), and various other tenements for Gold, Tin etc.

What we are seeing today is the usual T+ forced trader selling as volume drops away.

After buying CAPO on Tuesday, and selling most of them yesterday in the trader frenzy, I am back today buying both the heads and the CAPO options today.

I'm happy to think an EV of $25M is cheap for $60M in cash and free carried for over $500M pa in iron ore revenue (with associated risk taken into account).

Good luck to all.