valuation

Howdy all

I came across a comprehensive document by RFC Ambrian which I believe was published overnight. This document is a Mines and Money document with a detailed analysis of the mining industry and outlook.
There are 2 pages on EIO given its part of their coverage universe.

There is no price target on it but its rated a spec buy. The date of the EIO section was November 21.

Regarding valuation, the report says:


Our median valuation for in-situ contained hematite iron in resource is US0.58/t compared with Agbaja’s current valuation of US$0.35/t. While we concede that there is an argument to discount Agbaja against its peers until beneficiation results are provided, we feel that when the exceptional scalability of the resource, relative ease of mining, proximity to infrastructure and quality of management are taken into account, Energio looks to be undervalued in the sector.


It all sounds good to me!!

So on 250m shares at 35c per tonne the 488 inferred resource is worth around 68c a share.

If you start doing the calcs on multiple billion tonne resources, you come out with some large numbers.

Bring on the met results I say!!