I was wondering if some one could help me to understand the calcs below....just trying to make sure holding is really worthwhile if market slides :)
I get lost at how the 15/1 is calc'ed and then how this can be used to arrive at .33 a share ?
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Is FDL fair value at closing price today?
FDL 974,079,494 sh @ .11 = $107,148,744
FDLOA 381,623,899 @ .055 = $ 20,989,314
Total M/C = $128,138,058 AUD
$5,366,790,000 US convert @ 1.097 x/chge Rte $5,887,223,417 AUD.
46/1 atm or $3.04AUD a tn based on April 1st Iron ore prices.
After 2nd phase drilling which will be around September assuming the tonnage is proven the ratio could come down to 15/1.
That would make it around .33 cents a share. Don't forget there would also be $38mln for conversion of FDLOA's. That may push it up a bit.
Once that has been settled i doubt we would need to worry too much about the CAPEX costs. I think we will have a few lining up at the door by then.
FDL
flinders diamonds limited
