Hi hc18,
This is probably one of the reasons why CFE market cap is $87 million compared to TFE $32 million. I've just done some quick research on TFE and it looks to be a very good buy.
ADY recently signed a $65 US Million dollar contract for 940 000 tonnes of iron ore. TFE is looking to produce 1 million tonnes of iron ore in 2007 and 1.5 Mtpa in 2008. TFE market cap is $32 million. You can do the maths :)
You stated that TFE has around 15M tonnes of resources, if they continue to mine 1.5M tonnes per year, the mine will last around 9 years. Which doesnt seem to be too bad.
TFE have a 40km line of strike in Frances Creek, with most parts of the Frances Creek Tenements unexplored. Further explorations and drill results should reveal more resources. Dont forget they also have the Mt Bundy, Rum Jungle and Warrego projects, increasing the potential for more iron ore to be found.
TFE already has agreements with Chinese Steel Mill, the market is there waiting for the product. Iron Ore is in good demand at the moment and TFE is trying to take advantage of the high iron ore prices. Last annual report reveals that TFE has no debt and around $15 million in cash. They wont need to raise anymore capital for further production/exploration/drilling.
I was also told that if a company is cashed up and has good management, they tend to have no trouble finding more resources.
Anyways now that ive done some research on TFE, i think i should i buy some while they are still cheap :)
I really cant see the TFE shares priced anywhere near 34c when they go into production in March this year. I think TFE shares can easily double in value once the cashflow reports are out in October. Do you think CFE stands a chance of doubling in price this year hc18? :)
DYOR
TFE
territory iron limited
