Fortescue shares have rocketed after the company announced it...

Fortescue shares have rocketed after the company announced it had discovered a massive iron ore deposit in Western Australia's Pilbara region.

The miner's price soared $12.97 to $64.50 at 13:48PM after revealing the one billion tonne discovery in the Serenity area, which forms the western third of its Solomon Project area.



went from $51.50 to $55 (current SP)

not allowing for the price rise prior to the announcement..........

so it dropped back 8% after a big rush up to $64

$3.50 a share rise ......1 billion resource

take off 2/3 for FDL's share amount

means it rose $1.16 per share apples for apples

then divide
400 mill (resource est) by 1 bill (FMG est)

40% or

46c a share.............makes 8c look cheap

But yes hasn't been proven I know
..........................................

Then using the $3.50 FMG rose

Puts the value of the 1 bill resource at

$1,050,000,000 or $1.05 billion

So far FDL's (conceptual resource)is valued at $28,000,000 based on same formula

yes......... not a proven resource........yet

so when it is proven in the next coupla months

Lets say 400 mill mt

resource should be $400,000,000

or about 50c minimum per share.

And thats before it goes into production.


Just my back of envelope calculations so shoot me down if u wish...........just trying to see the potential upside in SP once resource is proven.

Could be a 625% rise minimum in SP based on todays 8c now and 50c in a coupla months.

Downside back to 1c

Worth a punt without any doubt imo.