The market is not fully appreciating the significance of what has been announced today and is overstating the risks associated with gaining FIRB approval. Do you really think the Company and JV partners have not been in close communication with relevant government parties prior to today's announcement?
I'm getting a distinct impression the new NPV from a zircon concentrate/LTR ilmenite project will be significantly improved from the already impressive $980m previously outlined in the BFSU. Even if we use $1.1 billion (I think it will be higher) and divide by the new issued capital of 345m shares post Yansteel placement, we get an NPV per share of $1.60 with no additional value assigned to the other exploration assets.
Factor in the limitations of an NPV valuation for such a long mine life operation and this stock has subsequent corporate activity written all over it, particularly now that it has been enabled and poses a serious threat to the existing mineral sands establishment.
Eventually the market will catch on, in the meantime we are getting another a chance to take another bite of the SFX cherry!
SFX Price at posting:
31.0¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)