CFE's price is extraordinarily low. I went back to have a look...

CFE's price is extraordinarily low.

I went back to have a look at the value proposition in the last presentation. But this time, plugging in CFE's current mcap.

@ $0.35 - mcap $220.5m

Cash and receivables (as at 15th August) - $131m

Securities (marked-to-market 15th August) - $78m

Enterprise Value - $11.5m!!! (btw, I thought I would adopt Tony Sage's multiple exclamation marks, as this EV deserves it!!!)

Now, admittedly, the value of the marked-to-market securities will have dropped, and the cash will be slightly less than the above. However, not long ago, Sage was on the record as saying Marampa was on the market for around US$500m. And yet CFE is trading on an enterprise value of just $11m.

Now even if Marampa gets sold later, or for much less than the US$500m, it is clear than CFE is trading at an unreasonably low price. Even if Marampa is sold for US$200m, that price would imply a share price DOUBLE the current price.

And Tony Sage is in there buying CFE on the market, at above the current share price. (Remember also that the company thought it was value accretive to buyback shares at prices up to $0.680 - what does that imply about their valuation on Marampa?)

The value is extraordinary. Contrarians buy at times like these, not when the chart and the price is flying high. Iron ore prices and demand remains strong in China and elsewhere, as does the Chinese acquisitions of iron ore assets in West Africa (e.g. Sundance takeover). It is a no brainer for contrarians. BUY.

Yaq