underestimated resource...

Seems I have the answer I wanted on this one...

Shi.t...seems I underestimated it by a long shot...the initial confusion for me over grade has well and truly been addressed today.

Without doubt in my mind, Whilcherry Hill is a company maker (with upside)...then we have the rest of the company to think about!

On today's numbers, with a JORC compliant resource of some 44m tonnes, with conservative profit margins of $25 per tonne and assuming their entry level plant capacity of 2mt...

We get profit n the range of AUD$50m per year for some 22 years...and cap ex payback in just 4 assuming full debt funding!

With a fully diluted share structure of just 50m shares, that's a profit of $1 per share...lol...with a PE of just 10 we get $10!

Coincident gold credits will pretty much cover admin costs and the like...so the above margins are more or less net!

Further, any future operation is likely to include Zinifex, with obvious costs sharing arrangements, further reducing TRF's capital requirments.

Add upside of a 600mt target resource and the potential for an increase to a 5mt, or most likely 10mt operation given the relatively modest cap ex requirments here...and the numbers start to get seriously silly.

As I said...add the rest of the company, including gold, uranium and more iron...and of course the recent $8.5m Lead/Zinc/Silver/agreement with Zinifex...and we effectively have two companies in one here.

MArket more interested in profits at the moment...clearly they have not worked out the benefits of time on this one.

As such, short term this is likey to suffer from the immediate needs of buyers versus sellers, as they each deliver on their particular needs...but when the dust has settled, this will be a good one to have a few of.

It's hard to tell exactly when to get in after such a spike...it could already have found a new floor given how few shares are finding their way to the market...or it may not have?

Value is what you get...price is what you pay.

Cheers!