To all the downrampers... On a day when the share is going down on good news it looks to me that all of the downrampers are coming out of their holes. Time will tell! My perspective: Last week Portman signed a deal with IRM on 0.50 cents per dry tonne. It has a conceptual target 18 -22m tonnes of Fe at a grade of 56 – 59% and it has been paid $10,000,000 in cash + 0.50 cents in excess on the first 10,000,000 JORC + 2% royalty. Check IRM announcement 13th August.
If you compare FMS on a 500 million tonne target the valuation should be $250,000,000 plus extra. This gives it a valuation of 20 cents per share fully diluted. FMS has the biggest advantage from all the other juniors; it is the closest to FMG railway and transport. To hear all the misinformation that has been given by downrampers (example Mozart56) I want to spell out some facts: • FMS valuation today is $143,000,000 (less than 30 cents per tonne). • FMS valuation fully diluted is $195,000,000 this will include $50 million in cash.
To compare FMS to BRM (for Mozart56): BRM is a good share and I agree it is totally below its value. However, the difference is that FMS is 500+ million haematite ore with a lot of DSO. Whereas, BRM has mostly detrital ore. This is my two cents worth....and after this shakeout of today, I am pretty sure that FMS will be rerated by the big guys. The future looks good........
FMS Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
