New to this stock so I thought I would ask the question of what is fair value.
Reading through the August announcement 'Moonshine magnetite resource upgrade' there is somewhere between 50 - 1000 Mt of magnetite available.
If we say conservatively there is 100Mt in the ground
Then we guess a price at 120 per tonne of iron ore (AUD)
In an interview I see they are predicting a price of $55(AUD) to get the resource to port
So 100Mt x $120 - (100mt*$55)
= 6.5 billion ???
Take off some operating costs, a higher dollar and then land on a conservative number of
= 5 billion?
But the current market cap is only 67million.
Have I got some basic math wrong here or is this valued very low at the moment?
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