mxr research valuations

From Sellier: First-Class Research

"Hi guys,
it's time to update the MXR asset valuation. Imho a lot of value has been added to the company in the past 4 months and i will try to give a summary:

Facts:
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143.353.000 Fully paid Shares
50.000.000 Options ( both MXROA and MXRO with the Expiry date on 30/06/2008 and 30/06/2009 exercisable @20c)


Current Cash (01/01/2008): 9,791 Mio AUD$ ( = 6,8c per share)

Current ERO holding @ 20c (fair value): 44,357,143 shares = 8.871 Mio AUD$ ( = 6,2c per share)

Options holding in ERO: 8.035.714 @ 0.09c (fair value) =
0,69 Mio AUD$ ( = 0,5c per share)


Total Cash and Cash equivalents:
18.662.690 AUD$ ( = 13,5c per share)

Current shareprice 17c (01/02/08)

Current Spec value only 3.5c (= 5 Mio AUD$)
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Assets with already proven resources:
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Windimurra Uranium Prospect:

7.5 Million pounds inferred resource ( around 750 Mio AUD$ in-ground value), unfortunately not yet recoverable due to West Australian mining policy, but likely to change in due time.

Possible asset value: 0 - 750 Mio AUD$ depending on change in government sentiment.
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Sellheim alluvial gold resource:

Latest quarterly indicated a resource estimate by mid-end of February with an annual production of 10.000 - 20.000 ounces at a cash cost of 200$/ounce starting in May.

Annual revenue of 15.000 ounces @ 845 AUD$/ounce = 12,675 Mio AUD$

Value of asset can be determined after the resource estimate but i reckon 20 - 40 Mio AUD$ to be fair value.
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Bird in Hand gold resource

Latest resource update outlined an inferred gold resource of 160.000 ounces with a resource update expected sometime early this year. Current work progress is currently being done on ground water studies( the biggest issue regarding BIH).

A possible mineable resource could extend to around 250.000 ounces with an approx. cash cost of 450$/ounce.

Current asset value is likely to be around 60 - 80 Mio AUD$
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Spec Assets ( resources remain be proven up ):
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Windimurra Iron ore and Vanadium drilling:

Latest quarterly indicated a 17m interval of high grade vanadium and 45% magnetite at the Canegrass prospect. The Shephards zone will be drilled in late February.

No asset value given due to an early stage of the project.
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Eromanga Uranium drilling with MXR free carried ( 30-50%):

Two drilling campaigns have been started by ERO in February which add a lot of potential and possible value to MXR. Any rise in the ERO shareprice will subsequentely lead to a surge in the MXR shareprice as MXR hold 35% of the ERO shares.

No asset value given due to the early stage of the projects.
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Conclusion:

Currently MXR's total cash and cash equivalents make 13.5c of the total shareprice, leaving only 3.5c for the remaining assets. Make up your mind about the value of these assets but imho they embody very good odds for the shareprice to go past 20c and beyond. As you can see the downside is limited due to the 13.5c foundation.

Anyway, i just wanted to point out that MXR is an extremely good buying opportunity with hardly any downside risk involved.

Any comments appreciated.

Cheers and good luck to all fellow holders.""


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