Hematite Resource Owners.Company Comparisons (19th Nov figures...

Hematite Resource Owners.

Company Comparisons (19th Nov figures with exception of FDL entry are supplied by Patersons in a research paper on FMG)

Enterprise Value Per Tonne Of Hematite Resource

$0.50 FDL (I've only used 300MT an not FDL's figures)
$1.76 SRK
$2.11 WML
$2.85 WPG
$3.71 GWR
$5.65 FMG (has since moved up in line with price move)
$5.66 RHI
$5.98 FRS
$7.70 MIS
$10.81 Average
$13.73 CXM
$26.12 MGX
$26.34 GBG
$31.09 TTY
$38.52 MMX
$47.85 AGO

Now the Enterprise Value of FDL is its market cap $155M less cash of say $5M plus any debt which is Nil I assume.

Lets assume it has 300 Million tonne of Hematite Resource.

FDL's Enterprise Value per Tonne is therefore $0.50.

This is why this story has legs, its actually supported by comparison against its peer avergage of $10.81 EV/tonne.

Location, location.

Being right next to FMG is a huge bonus from a infrastructure point of view and as well the flat terrain and outcropping of the iron ore resource is a bonus. Iron Ore desposits I understand, tend to be "what you see above the ground is roughly what lies below in terms of width and breadth". What you dont know is the thickness of the ore until you drill it. FMG are drilling right up close to the boundry and this gives us an important insight into potential thickness, i.e. up to 20 metres.