Updated INDIAN IRON ORE - THE BIGGIN
I've updated this to take into account the current Iron Ore Prices based on the the latest Rio/China contracts of $155/tonne (this is what any valuation report will have to price it at). Spot prices are higher!
Also reduced the tonnage to 200million tonnes at 60%Fe at AUD$155/tonne (contract only price).
= $18.6 billion. CFR has a 42% exposure through their subsidiary.
= $7.8 billion.
Assuming very roughly estimated production costs/taxes of $4.0 billion (higher end) leaves $3.5 billion. This equates to an undiluted CFR share price of now$2.18 per share.
So if the geologists report that is due be released within the next two weeks (as per announcement) comes up with anything that mirrors 200million tonnes at 60%Fe and market prices are at $155/tonne the market could re-value CFR at 10% "acreage value only" of $350million which equates to21.87c per share undiluted, or
17.5c diluted (not including employee options)
I have included the update since any AusIMM report must use current market price figures and not low end figures as i previously mentioned.
But remember these are only my own interpretations of upcoming scenarios and should not be taken as investment advice. DYOR.
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