Front page, page-35

Brokers time to time get some flack for their ability to recommend stocks, but the thing i like about the resource game is with enough drilling results, met work, inferred JORCs can be produced (later become indicated and then measured JORC).  Then a backdrop of the bullishness or bearishness of the commodity itself gives you a framework to crunch numbers such as they did in this report.   This back 12 months ago was a great piece of analysis by Shaws and with the inferred JORC the ability to number crunch a NPV @14%  of circa $980M, factor in share dilution to make the project happen and you can wind back to SP i.e their $3.25 target (today price only about 30c off their mark room for improvement fellas) is not such a black art of crystal ball gazing as people think.

http://www.syrahresources.com.au/site/DefaultSite/filesystem/documents/Shaw Syrah Report.pdf

when you read something like that back in the day you can (or I can at least) see the roadmap and the value companies can yield.

Granted its not all as simple as it sounds since there are other risks (how big is CAPEX) and ability of management to advance the project on an ongoing basis but it is a very useful part of investing.  Also it evolves as the company learns more about the project the numbers can be crunched more finely, and the NPV instead of 12-14% can be based on 8-10% discounts.

TON might get there too one day as they produce a JORC which potentially can take them from a speccy play of small money  to a long term investment play with much larger amounts of money thus allowing you to manage your capital risk, while realising greater profits.

time will tell.....