Have read most posts over the past 4-6 weeks. The underlying theme seems to be to justify a take-over price or pass negative sentiments to reduce the SP. Seems many have agendas not disclosed. Even the brokers weigh in with "fictitious" valuations based on emotion. My broker is a friend of over 30 years working for Citi. He cannot explain their valuation of $0-41 advising that this valuation is based on an iron ore price of US$70 per tonne in 3-4 years time. They have however been a net buyer of this stock since. Perhaps we could consider a valuation based on a comparison with SDL. All of the Sino supporters would be horrified as this would be closer to a realistic figure and up to date. Sino would dearly like to steal JH for a song to justify to the Chinese Government the overpayment for Weld Range. Often forgotten is MMX has ~150m tonnes of DSO of a better grade and lower impurities than SDL. Also the drilling undertaken since Sept 2010 has not been updated on the resource figure. Ore requiring beneficiation is fairly similar in total tonnes and grade. Infrastructure requirements are not too dissimilar. Very challenging and costly but doable. So. What is MMX realy worth as a profitable producer? I think certainly very much more than the present capitalisation and some will be suprised at the eventual figure. Investors should DYOR.
MMX Price at posting:
72.5¢ Sentiment: Buy Disclosure: Held
