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TFE - Territory Iron

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noirua

noirua

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Information on Territory Iron can be located at: http://www.territoryiron.com.au

TFE have an interesting 45 Km line of strike in the Northern Territory about 190 Km South East of Darwin and excellent rail access via the Adelaide to Darwin Rail Linc. 4 million tonnes of reserves and 9 million tonnes of resource is considerably more upbeat than last year.

The company MD, Mr Doug Stewart gives the Fourth Quarter Report: http://www.brr.com.au/event/TFE/1145/12749
 
Mixed results from the Frances Creek Project - 33 holes drilled since July - has caused a sideways movement in the share price for the last 3 months, following a dip just before that. The shares may well continue under pressure, though the longer term prospects for Frances Creek may renew interest early next year.
 
TFE are now at 31 cents after another upgrade of iron ore at Frances Creek. Early days, but the clouds may be drifting away.
 
Yes, yes, yes, the clouds are drifting away on this iron ore minnow and up to 35.5 cents this morning with the years high of 45 cents just within sight.
 
jollyfrog said:
Hey Noriua, do you follow Fat Prophets? they had a buy recomendation on this its looking VERY promising. :)
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I've been following this one since buying in early August and it is one of those stocks that refused to go up despite upbeat news. I have to be a bit careful and not get carried away as the upside may not be as sudden as JMS or as solid as FLX. Worth a flutter at these levels though.
 
NOW IN TRADING HALT, due share placement. TFE have moved on up to 39 cents in the last few months and time to look more closely at them.
 
I just stumbled on this one - going into production soon - its forecast EPS should in the realm of 15-20 cents - even after the recent share issue

market cap still only 50 million

on a conservative P/E of 8 we have a share price between $1.20-$1.60

was thinking of buying a small parcel tomorrow - am I missing something here or is this one a 'no-brainer' ? (fundamentally speaking)
 
apparently it has been a fat prophets pick for some time

spent a while in the 27 - 35c range until recent share placement at 50c

the nt govt is funding most of the port infrastructure upgrade required with tfe paying them back at, if i remember correctly, $1/t when up and going

cheers :)
 
fat prophets from approx 07/06 - i am not a fat prophets subscriber nor holder of tfe:

"Territory has provided encouraging results from its current exploration program at its francis creek iron ore deposit in the northern territory, with a substantial upgrade in its iron ore resource inventory.

The first iron ore production at frances creek is anticipated in early 2007 and we believe january's all time high share price of 47.5c will be reached again.

Recent drilling on the frances creek iron ore project in the norhern territory suggets a substantial resource upgrade is likely in the near future. The company has completed more than 6200m of drilling.

Elsewhere in the area, drilling between the old abandoned helene 2 and 3 pits has intersected high quality hematite ore up to 18m thick, with excellent potential for resource upgrades.

Regional exploration work is also promising, with high resolution magnetic surveying during may over the northern tennements due to be processed shortly. This should provide additional drilling targets.

Recently, the northern territory governement announced that it would partially fund port infrastructure in darwin to assist with the development of the francis creek iron ore project.

The francis creek project is, therefore, firmly on track to produce ore through a mix of lump and fines through a simple crush and screening process.

Francis creek hosts at least 35km of prosective iron ore strike length and comntains 55 known iron ore deposits.

A number of changes over the past 30 years have made the revival of this iron ore field viable.

We rate territory iron as an ideal iron ore player.

The shallow nature of the francis creek deposit and its favourable metallurgy, combined with its access to rail and port infrastructure are key attractions."

cheers :)
 
Despite a fall to 53.5 cents today, down 3.5 cents, TFE have been quite strong and appear to show a breakout on the 12 month chart.
 
Trading at 54 cents, I think we can say we have a breakout on the TFE chart. Well up on the 40 cents and looking to remain so. Good Luck to those who jumped on board. Fun times ahead.
 
with the placement of 60 million shares at 50 cents - this should give investors confidence that there is no way the big players would pay 35% above the previous average price unless they thought it was a screaming buy - DYOR
 
imajica said:
up to 55 cents - will slowly creep up as we near production
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Yes indeed, all going well and that 60 cent target could be achieved very shortly, imho.
 
another member on HC crunched the numbers and came up with this:


135 million Shares
60 million shares (recent capital raised to Crawley)
Total = 195 million shares
Market Cap = 195M x 0.49c
= $95.55 Million

2007 Production Target is 1.5 Mtpa
Iron Ore Price = $69/tonne USD
Revenue = 1500000 x 69
= $103.5 Million USD
= $131.85 Million AUD

No more capex, the last capital raised is enough to fund the company right into Production.

I cant find the estimated operating cost for TFE but lets be very conservative and say its half the revenue.

Thats $66 Million EBITDA
NPAT should be around $46.2 Million
(thats nearly half the market cap!)

1) MOU in place with China
2) Production in March
3) Exporting in August
4) Cash flow report out in October

Some people are probably nervous about buying after the recent rise in share price. But looking at the stock fundalmentals, this stock should hit $1 by October.

DYOR!
 
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