Perhaps the grade is lacking compared to others - 58%+ is fair but the rest would possibly need upgrading?? Not sure - plenty of other DSO IO out there at 60+% which may be making this less attractive? WHo knows, just thoughts...
Much has been said from me about this one lagging the rest of the iron ore sector so I shoud do some figures to support this.
FRS have a Manganese and Gold deposit which are forming up nicely but I will value those at nil for this exercise.Cash $22mill.
316 mill tonne of 50-55% Fe
210 mill tonne of the above is avge 58.5%
All DSO (correct me if I'm wrong)
Shares on issue 210 mill
Options to be converted 7.5mill (that will bring in some cash too)
Total fully diluted 217.5 mill shares
@ 82.5c
Market cap = $179mill
less cash of $20mill
MC = $159mill for iron ore, manganese and gold
So just attributing value to iron ore
$160mill / 316mill tonne
= 50c per tonne of DSO
This has got to be one of the cheapest around at the moment surely.
It is a great position not far from the rail line and BHP's Jimblebar Mine. It has some Asian interest Wah Nam at 19.9% and China Rail at 12.61%.
It is part of the Alliance with Brockman etc etc.
I just don't understand why this is lagging at the moment.
Can someone tell me? Recent drilling not yet in certified resources has been brilliant as usual.
This has got to be one of the cheapest around at the moment surely.
It is a great position not far from the rail line and BHP's Jimblebar Mine. It has some Asian interest Wah Nam at 19.9% and China Rail at 12.61%.
It is part of the Alliance with Brockman etc etc.
I just don't understand why this is lagging at the moment.
Can someone tell me? Recent drilling not yet in certified resources has been brilliant as usual.
This has got to be one of the cheapest around at the moment surely.
It is a great position not far from the rail line and BHP's Jimblebar Mine. It has some Asian interest Wah Nam at 19.9% and China Rail at 12.61%.
It is part of the Alliance with Brockman etc etc.
I just don't understand why this is lagging at the moment.
Can someone tell me? Recent drilling not yet in certified resources has been brilliant as usual.
...
FRS have a Manganese and Gold deposit which are forming up nicely but I will value those at nil for this exercise.
the annoucement states this is equivalent to $1.30
with this in mind why are people selling at $1.05
Wah Nam might have come off a bit, thus reducing the value of the initial offer. Just a guess.
Was only a matter of time before these got snapped up.
noted that you are valuing them at nil
however
re a gold deposit, can you provide details of the jorc resource (only gold project with FRS located sofar was spun out into LSN and FRS hold less than 10% of shares in LSN - 1.5M of 24.9M shares as of FRS' sep qrtly rep)
as to a manganese deposit, can you provide details of the jorc resource
from their 2009 ann rep they indicated intersections at Enachedong were uneconomical and since then they have only gotten rock chip samples (up to 57.6% Mn) - observations of Mn explorers show good rock chip samples rarely equate to hi-grade drill intersections (ie 40% + for Mn)
initial search cannot locate jorc resources, ie deposits for Au and Mn for FRS, and as mentioned above the Au was spun-off into LSN, can you assist in providing details of the jorc resources for these deposits you mentioned
You would think so, but Wah Nam are currently up more than 12% today in Hong Kong, thus now valuing their offer at $1.46 for FRS and $7.29 for BRM, using the 7.82 exchange rate quoted in Wah Nam's offer letter.
They're not getting valued at those prices because who wants shares in Wah Nam? It's just a scrip bid - if they offered cash it would be at or above those prices.
They're not getting valued at those prices because who wants shares in Wah Nam? It's just a scrip bid - if they offered cash it would be at or above those prices.
I highly doubt BHP will make a bid. They are too big a company to be able to do a quick analysis and launch a counter offer. Look at all the due diligence etc that has gone into their other attempts.
Sorry prawn, I'm going to have to disagree with you here. It is BHP's job to watch all share movements in any iron or junior in the Pilbara.
BHP kept China Rail out on UMC last time. Link below. Every chance they will do anything they can again to keep the Asian interest out. Grace
• PFS confirms Project is financially robust and technically viable
● Key estimates from the PFS are:
● NPV8 Range from A$1,120 to A$1,340 million
● IRR Range from 24 to 26 per cent
● Significant opportunities to further enhance value
● Board approves commencement of Definitive Feasibility Study
The PFS is based upon the following key parameters:
- life of mine production was assessed to be 227Mt (wet);
- the final product grade is approximately 59% Fe, 2.3% Al2O3, 4% SiO2, 0.09% P,
8.3% LOI;
- product specification is comparable to Fortescue Metals Group Rocket Fines and
Rio Tinto Iron Ore Pilbara Blend fines;
● Maiden Iron Ore Reserve of 126 million tonnes
● 23% increase in + 55% Fe Mirrin Mirrin resource; now 37.9 Mt
● Current Resource Total = 328.7 Mt Corporate Objective = 400 Mt
FerrAus Limited advises that it has today requested BHP Billiton Iron Ore, which is
representing the Mount Newman Participants (BHP Billiton Minerals Pty Ltd, Mitsui-Itochu
Iron Pty Ltd and ITOCHU Minerals & Energy of Australia Pty Ltd) to agree by 5pm WST,
Tuesday 16 November 2010, to the appointment of Professor Allan Fels AO as the
independent expert to determine the final terms and conditions of a binding rail haulage
agreement for the carriage of FerrAus’ iron ore on the Mount Newman railway system.
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