Largess,The way I see it holding on to this for 2 years or more...

Largess,

The way I see it holding on to this for 2 years or more could see us make some very big money. This is the way the next two years to pan out give that they are targeting production by then.....



Passport or someone else take up a placement at $1.50 for 10million shares after the scoping study. If the scoping study comes out good the price should get to this level if not more.

That would raise cash of $10-15million for now.

I use $1.50 as its more then coincidental the company is all of a sudden attracting brokerage support (Intersuisse buy recommendation), about to appoint a new MD and Exploration Manager and release the 33mt JORC and scoping study all at once.

Then there are the 22,788,526 20cent options expiring June 09.

That would raise another $4.55million.

Should be enough until BFS is done if not maybe a placement at $5 or more for 5million shares should cover it.


Leading into the production stage the share price should high enough the half the required capital to come from a 1 to 1 rights issue and the rest from the bank.

So.... after all this dilution we would have around 150million shares on issue.

But if producing at a rate of 10Mta what would the market cap be?

With current iron ore prices they should be making a margin of $55 per tonne (again hard to speculate but fair estimate) , earnings of approx. $550million per annum.

Take a PE ratio of 8 and you get a market cap of $4.4billion.

$4.4billion/150 million = over $29 per share.

Almost a 30 BAGGER IN 2 YEARS!!!!!!