the acreage potential, page-7

Hence why I used a revised tonnage below. Just copied and pasted from earlier.

Updated INDIAN IRON ORE - THE BIGGIN

I've updated this to take into account the current Iron Ore Prices based on the the latest Rio/China contracts of $155/tonne (this is what any valuation report will have to price it at). Spot prices are higher!

Also reduced the tonnage to 200million tonnes at 60%Fe at AUD$155/tonne (contract only price).

= $18.6 billion. CFR has a 42% exposure through their subsidiary.
= $7.8 billion.

Assuming very roughly estimated production costs/taxes of $4.0 billion (higher end) leaves $3.5 billion. This equates to an undiluted CFR share price of now

$2.18 per share.

So if the geologists report that is due be released within the next two weeks (as per announcement) comes up with anything that mirrors 200million tonnes at 60%Fe with market prices of $155/tonne the market could re-value CFR at 10% "acreage value only" of $350million which equates to

21.87c per share undiluted, or
17.5c diluted (not including employee options)

But this is just my own interpretation of any upcoming valuation and should NOT be taken as investment advice. DYOR.

CFR - The next Indian Iron-Ore Giant

Go The Elephant!