who has been buying, page-3

I posted this a few days ago to give an idea of what FMS could be worth.
Fatstocks,
Your post the other day about a similar subject got me thinking, so I did some research.
If you get a chance could you confirm or correct my research.
I think I am around the money though !!


Another interesting article I found.
More than appropriate to FMS !!


Quote

The Fourth Biggest Iron Player in Australia

Western Juniors Could Create 4th Biggest Iron Player in Australia

Here’s some foresight. Investors who jumped on the iron ore train are getting their dividends. Yesterday Murchison Metals (ASX:MMX) gave iron cousin Midwest (ASX:MIS) an all-share merger offer worth . The market loved it. Midwest
leapt 12.3%. Murchison flew 8.3%.

Everybody won, except Sinosteel. The Chinese giant was closing the net around its prey, Midwest. The nerve of another prey to go and outdo it.

Together, the two iron diggers would have a market cap of AU$3.2 billion. That’s bigger than Portman (ASX:PMM), Mount Gibson (ASX:MGX) or the other second-tier contenders. It’d leapfrog the companies up to fourth place in the industry, behind Fortescue (ASX:FMG).

The structure of the deal, though, tells you a little more about the whole matter.

Sinosteel already has 19.9% of Midwest. That’s the maximum you can own without bidding.

In a direct response to the stake, Murchison has proposed a reverse-takeover. It has offered itself up as a sacrifice to the deity of iron ore. Under Australian corporations law, a reverse-takeover means the deal only needs 50% acceptance from Midwest shareholders to go through. Otherwise, a standard takeover would’ve meant a minimum of 75%.

Ergo…the two do not want to be bought. Not by China. Not at any price near what Sinosteel is offering. The Australian iron sector is combatting external consolidation with internal consolidation. Both mean share prices are going up. Here the five top juniors’ performance this year. They’ve made gains of between 21% and 65%.

Midwest’s management has recommended that shareholders accept the deal. You’ll find out in the next three months what they think of it.

You’ll also find out exactly how desperate China is to get its paws on our iron. The ball’s in your court, Sinosteel. The company will most likely withdraw, and reassess. Perhaps it’s content to pay huge spot and contract prices for iron in Asia. Or perhaps it’d like to own the next best producer after Fortescue.

Unquote


I have just gone through MIS and MMX annual reports and to my surprise between the two companies they have 60% - 30% of the amount of high grade Haematite that FDL, in theory have, approx 157MT proven and another 80MT probable or indicated, total around 260MT to be fair, at an average of 58.7%FE.
FMS say we may have up to 400MT on our entire tennement, but based on FMG estimates, on their tennement next to our Area E, of 220MT, we are more likely to have between 750MT and 1 Billion tonnes, touch wood !!

MIS have a mostly inferred resource of 430MT of lower grade Magnetite at approximately 35%FE which they mix with the Haematite, after benefication, to improve the grade of the haematite to around 65%FE, good idea, to value add.

MMX having the lesser resources but more cash and infrastructure have implemented a reverse take over which values the combined companies @ A$3.2 Billion, blowing away Sinosteel's offer.

My point being is that on paper comparing the soon to be two companies that no wonder FMS went through the roof today.
The gossip, as we know, is China wants a stake in pretty much any IO it can get it's hands on and is having to go lower down the chain to acheive it's goals of securing major IO supplies and contracts.

Someone please come up with solid facts as to why I am wrong, unless I have screwed up my research, which could have happened FMS are now a player, watch out if drill samples confirm the ore and grades !!

In summing up MIS, MMX resources are:

Haemetite 260MT 58.7%FE
Magnatite 430MT 35.0%FE

$3.5 Billion company

FMS probable resource:

Haemamtite 400MT 59.7%FE (Conservatively)

Value ???

MIS and MMX 4th Biggest IO player HA !! watch out for FMS, HERE WE COME !!

LOL

E