Even after todays jump in share price, market capital is at a measly $12million.
Considering RAD have $6million in cash to take them through for the next couple of years' drilling and resource definition, the current value of the potential I/O is 6million.
So with the current target of 4-7billion tonnes of ore, this thing is extremely undervalued.
Even a initial definition of 60mt of I/O at the current share price would give the company a EV/t of 10c per tonne of ore. Though i expect once there is a JORC of any size that the market cap should get to $50-100m ($1-$2 per share)
Other I/O explorers:
LEG: MC of $110m - no resource yet (similar target)though located in Cameroon.
PDY: MC of $47m - target of 3.5-5billion tonnes at 25-35% Fe and 55mt of DSO 55-58% Fe.
IRD: MC of $100m - 320mt 17% Fe, target of 2.8-5.7 billion tonnes
IFE: MC of $45m - 200mt JORC, target of 1-1.5 billion tonnes
I think the key in unlocking alot of value isn't the 4-7billion tonnes target at 20-45% Fe (though should at minimum triple the share price alone), but the 370-600mt target of 40-65% Fe ore.
Either way, this has multi-bagger written all over it, and i jumped on board with a small parcel today.
WBT Price at posting:
34.5¢ Sentiment: Buy Disclosure: Held
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