As we get closer to the jorc announcement it may be of interest...

As we get closer to the jorc announcement it may be of interest to some new flinders shareholders and reflect back on the resource and value estimates back in August last year ( 7 months ago).
What has happened since these calculations?
The resource target has grown from 300m t to 900mt.
the price of iron ore and therefore the implied inground value has fallen
market sentiment has declined as a result of the American lead financial crisis around the world
All major governments around the world have announced massive financial stimulus spending which should start to kick in over the coming 12 months and beyond
2010 and beyond is likely , as a result of this massive and unprecedented spending on principally infrastructure and growth programs
The FMS share price fell like all resource stocks have, in the case of FMS, from 20c levels to average around the 6c levels.
Recent confidence in the world market has seen a 15% average increase in market indices from the lows of recent.
FMS share price has increased to the 9c levels in anticipation of the maiden resource announcement in the next week or two.
My initial interest in FMS was a few million options at .007c at a time when there wasn't much broader market interest in iron ore.
FMS still owns a lot of shares in Maximus Resources which they floated a few years ago.
The MXR discoveries in the Mid West of Western Australia have since posting my estimates of the MXR implied inground value have been significantly increased from around 1.7 billion tonnes of iron ore (magnetite)to 3 billion tonnes plus ( I think there is probably around 4 billion tonnes)
There is potential for the shareholding FMS has in it's off shoot MXR, to be of higher resource value than the FMS 882 tenement. FMS also has, via it's major share holding in MXR, exposure to a lot of other minerals including, gold, uranium etc.
FMS also has via MXR shareholdings in ERO and several other explorers around Australia.
FMS also has direct shareholdings and jv's in a number of other companies which should be included in any valuation of FMS, it is undervaluing FMS not to recognize and include these other assets and jv's and shareholdings.
So whatever the value of the hematite iron ore is in the current drilling program, the value is considerably higher.
In the case of MXR, the current share price represents probably the cheapest exposure to a multi resource explorer with large assets inground and the just recently commenced gold production at Selheim near Cahrters Towers in Queensland's historic gold field. The value of FMS's shareholding in MXR has very large growth coming when the MXR share price takes off and starts to reflect the inground resource values. MXR has been hammered and way oversold but that won't stay that way as we are seeing with the FMS share price recently.
Page 13 of the presentation at the FMS AGM identifies the significant jv tenements FMS has with Fortescue which not much has been written about but should not be underestimated for their potential forward value in a variety of ways.
http://www.flindersmines.com/presentations/2008/fms_p20081126_agm_kw.pdf
And don't forget the Kennedy rail spur extension to the FMS and FMG tenements in the Hamersley which Fortescue is planning to construct to "Serenity" which includes the FMS tenement 1306 which FMS will get an iron ore royalty from FMG.
Some comment that RIO may be interested in a jv with FMS on the Hamersley ground is not out of the ball park but I think a jv with FMG is the more likely scenario.
No value has been included by the market in the MXR holdings FMS has but when it does and the MXR share price goes up to where I expect it will, the MXR holding could be a significant component of the FMS share price in years to come.
Because MXR has so few shares on issue compared to those on issue in FMS, the MXR share price will probably be several multiples higher than FMS but the market cap of FMS will probably still be higher because of the larger number of shares on issue.
We'll see as time goes by.