they rate it as a spec buythey say that the cheif executive...

they rate it as a spec buy

they say that the cheif executive stated that theyre going to be the FIRST magnetite project off the ranks with 5mill tonnes per annum initially whichll be scaled up to 10mill tonnes per annum.

costs to be $20-$22 per tonne

they reckon theyll get $80/tonne as auroxs ore is benchmarked to rio tintos hamersely fines. Accounting for 57% purity of aurox ore, that translates to $47 a tonne.

So margin according to this pricing is very good.

they forecast another capital raising whichll be the 'main course' as they need another $250mill (thisll be a mixture of equity and debt it seems)

So just for the 5million ore per annum according to the figures of the criterion using the margin and say 300million shares on issue would generate an EPS 36cents per share

this doesnt include the revenues from the vanadium/ferro vanadium??

I have an excel detailed analysis I did a month ago and ill dig it up and post it. Problem is i made many different dilutionary assumptions with no.shares on issue.

With all projects up and running I assumed apprx 500-600million shares from memory (assumming no debt or adding the debt as part of equity in the form of convertible notes)

30 cents a share based on close to 400mill shares on issue, with 5million/yr proddy of ore. give a PE 10 and we get $3/share.

ill revisit my excel spreadsheet and post a more accurate analysis when i have the time (maybe later tonight).

its undervalued bgased on potential as u can see from a very simple analysis (I assumed 85USD/AUD)