So far there has been much spontaneous 'grab the moment' comment about this stock and, if only for my purposes, I have put together a short chronology of what I think are some of the facts surrounding what appears to be the discovery of a new iron ore province in WA:
08/10/09: Co. ann. of an av of 37.9%Fe in samples containing 31.2% magnetite over a 10km zone. The target is 200-300mtonnes within this 10km zone. The area lies close to railway infrastructure and the minerals are such that minimal beneficiation is required. More drilling will occur when the wheat harvesting season is finished.
05/01/10: Co. ann. An aeromagnetic survey has shown five areas totalling 70km of potential iron targets. Drilling "is scheduled to commence next week".
07/01/10: Co. ann. George Sakalidis, director and CEO, has increased his share holding to 3,230,219 FP shares (from 1,161,172 at June 2009). Transactions occurred on the 5th & 6th Jan. Read this fact again, very carefully.
11/01/10: THE AUSTRALIAN, Robin Bromby: Early dreams and talk of "at least 3btonnes of iron ore" and "Magnetic tries to pick up more ground in the area".
13/01/10: Co. ann. Jubuk iron targets land holding tripled to 1950sq.km. MAU's prospective iron ore tenements are now 2600sq.km.
Shares issued: 51M after an allocation raising abot $0.9M late in 2009. Capitalisation: At say today's 39c it is $19.9M Valuation: Oh so important. It is unlikely that the early drill results in Oct '09 (see above) will have 'picked the eyes' out of the prospect and higher results may be revealed soon. But we can't assume this at this stage. The best guide is probaly looking at stocks like Cazaly and Iron Ore Holdings..both budding junior iron ore production prospects. CAZ is cap at $34M; IOH is cap at $244M.
Using this as a guide (and we must do this if we are to consider investing in this stock) the MAU share price will be between $0.67 and $4.78 if the drill results come back as being anything like promising. If the "dreams of a 2-3btonnes of iron ore" are borne out then we are truly looking at another Fortescue.
Yes, I am a holder....and for good reason when you consider the above facts. Good luck to all fellow investors.
MAU Price at posting:
39.0¢ Sentiment: LT Buy Disclosure: Held
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