WHAT IS THE TRUE VALUE OF RED HAWK MINING'S PILBARA IRON ORE PROJECT

WHAT IS THE TRUE VALUE OF RED HAWK MINING’S PILBARA IRON ORE PROJECT

RHK’s majority shareholder Todd Corporation know this because their private company's excellent BBI’s Karratha Presentation, was in my opinion, way beyond anyone’s expectations. So have minority shareholders been mislead?

I believe BBI was forecasting 50million tonnes of high grade iron ore per annum for 80years. That is 4billion tonnes plus (really around 5.8billion tonnes reserves total) with the ore coming from Flinders Mines / RHK Pilbara Iron Ore Project

For example let’s do the math for a 50year mine life: 50mtpa X 50years is a 2.5billion tonne operation, and using the 70% formula in my opinion PIOP (Pilbara Iron Ore Project) must have an iron ore reserve of around 3.7billion tonnes for a 50 year mine life or around 5.8billion tonnes for an eighty year mine life (find and watch BBI’s Karratha video).

In this scenario, in my opinion, let's say its a 50mtpa operation, and if there was a A$100.000 profit per tonne (always goes up or down) making potentially a gross A$5billion profit annually or $25.00 per share gross (with 200 million shares issued) Todd Corporation know, THIS IS THE MOST COMPETITIVE WORLD-SCALE GREENFIELDS IRON ORE PROJECT ON THE FACE OF THE PLANET. Todd Corporation CEO, Mr Jon Young said in 2017

Scary amount of money isn’t it. I know RHK isn’t doing a 50mtpa operation, however it appears that Red Hawk Mining has enough high grade iron ore reserves to do so. Not just the one to ten million tonne per annum operation, 243 million tonne DSO is over 20 + years, that the board are trying to get operational by 2025/26, that shareholders are happy with.

• However if someone or our majority shareholder wants to buy us out, in my opinion it is reasonable to go back to Todd Corporation’s BBI’s Karratha Presentation having a reserve of approximately 3.7billion tonnes of high grade iron ore for a very long mine life of 50 years, and possibly up to 5.8billion tonnes for an 80 year mine life.

• However it appears Red Hawk Mining only want to talk about their Blacksmith trucking operation of 243million tonnes. In my opinion I think that is great, hopefully won’t take too much to achieve a $1.00 per share fully franked dividend. In my opinion, the banks would be happier knowing RHK’s PIOP may have around 5.8billion tonne high grade iron ore reserves.

• We know there was 1.04billion tonnes of 55.6%Fe that is easily upgraded to 58.5%Fe, as said in FMS 2014 Investor Presentation, but unfortunately it appears the Red Hawk Mining Board dismiss this.

• We know the FMS Board upgraded “PIOP” to 1.5billion tonnes, but for some reason downgraded it to 52% “Low Grade” in 2018 from that proven 1.04 billion tonnes of 55.6 > to 58.5 %Fe announced in FMS 2014 Investor Presentation.

• Successive FMS and RHK boards were always saying “PIOP” is low grade iron ore (why did Todd’s BBI say otherwise)

• SM said FMG wouldn’t be interested in “PIOP” because it’s low grade 52%Fe. (why did Todd’s BBI say otherwise)

• Red Hawk Mining appear to have at least 3.7billion tonnes to 5.8billion tonnes plus.“That’s a World-Scale Project”

In my opinion, if it comes to buying out minority shareholders, or selling Red Hawk Mining to some mysterious buyer, probably at “fire-sale prices”…… In my opinion, the price should reflect the real true value, that Todd Corporation’s BBI knew was there at BBI’s Karratha Presentation.

In my opinion, Red Hawk Mining shareholders are sitting on a “gold mine”. In the right hands RHK should have massive upside just like Fortescue(FMG) had all those years ago. However FMS / RHK minority shareholders know the real true value of Red Hawk Mining’s Pilbara Iron Ore Project by looking at Todd Corporation’s BBI’s Karratha Presentation, that somehow RHK management appear to be oblivious of. Maybe there is a reason for that.

We just want to go mining, however in my opinion $25.00 a share (one year profit of a potential 50mtpa x 80 year mine life) would be a fair price to secure all shares that minority shareholders hold.

This is just my opinion, not financial advice. We are holding our shares for as long as we can, waiting. Do your own research.