haematite that is a very reasonable and conservative way to get a fair value for the company, to discount future cash flows from production. On the other hand, in this market which is hot for iron ore there are a lot of companies extremely highly valued based on in ground resources alone never mind cash flow, I wouldn't mind seeing some of that premium built into UMC....I'd be happy with your estimate and delighted if it were somewhere between yours and $10/tonne in the ground.
The bauxite is a tricky one, potential is enormous but I doubt much value has been factored in by the market at this point in time.
It's nice to have a company where it is highly likely the worst case scenario is considerably higher than the current price. And best case, hmmm.
UMC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
