rubbish evaluation, page-2

Agree with you Hindsy.The lower figure is a joke. Cost has never equalled value or any multiplier of it and you cannot estimate the value of an asset from the cost of trying to find it. Absurd method and not worth the paper it is written on.

The upper figure of $48.59m - based on a weighted aggregate of 5 real-world magnetite transactions - can be taken more seriously but only as the value of HAW`s share of the fraction of the magnetite resource publicly declared to date.

Even then it is flawed for 2 reasons:

It throws 40% of the value of Mt.Bevan DSO haematite in with 40% of the exploration value of the Eastern BIF magnetite and calls the result $1.35m. Patently under-valued.

It ignores the very positive anns made by LCY during the course of the drilling for which we await results. These included confirmation of the continuity of thickness and grade of magnetite along the length of the Western BIF targets - giving high likelihood of an eventual resource several times the size of the tonnage on which the $48.59m is based - and particularly included positive metallurgical results which give Mt.Bevan ore a massive cost advantage and therefore premium value over comparables.Even without the awaited JORC significant hope value is appropriate here and none has been applied. Again patently under-valued.

Not concerned as LCY will have to give up the goods eventually and if the resource drilled so far is 1.3bn tonnes or better (which looks likely on all that we have been told to date) then HAW`s share will be worth at least $100m or just under 5 times current market cap.

Not just waiting for the IO. At the end of this month we will get gold results from the high grade pod at Coles and the open pit at Anglo Saxon to add oz to the Trouser Legs JORC resource and - more speculative - a possible near-surface resource at Deep South. Beyond this we can reasonably expect maiden JORC resources for Edjudina, Coffey Bore and Whiteheads in 2013. Significant added value when you have the backing to go to production.

I don`t care if I have 10 shares in a Company with 100 or 1 share in a Company with 10 as long as each of my shares is really worth at least 7 times what the market says it is.