In today's West Australian, there is speculation that Atlas Iron is close to selling a 70% stake in it's Ridley magnetite deposit for AUD$150 million. This would value the entire deposit at 150/0.7 = AUD$214 million.
The Ridley deposit is 2,010Mt at a grade of 36.5% Fe. So roughly 733Mt of ore. This places a value of 214/733 = 29 cents per tonne.
So if ACS can prove up say even 300Mt at say 32% Fe, this is roughly 96Mt. At 29 cents per tonne, this equates to a MCAP of 27 million.
Obviously this is a very, very rough guide as a lot of other factors come into it such as mass recovery (which appears to be much better for ACS's magnetite compared to Ridley), location, steel mill set-up etc etc.
I still think this is substantially undervalued.
I also found out that the Asia Iron Holding deposit is 255Mt at 31% Fe.
Ralph
In today's West Australian, there is speculation that Atlas Iron...
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Mkt cap ! $2.937M | |||
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| No. | Vol. | Price($) |
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| Price($) | Vol. | No. |
|---|---|---|
| 3.0¢ | 50000 | 1 |
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