imajica said: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!
Territory Iron finalises agreement with NLC and Traditional Owners
Northern Territory iron ore company Territory Iron (ASX:TFE) has struck an agreement with the traditional owners of the area covering the company’s Frances Creek operations in the Northern Territory. The Parties have agreed between them in relation to the grant of mining interests and development of the Frances Creek iron ore project.
The iron ore project comprises 13 tenements and is located approximately 28 km north of the regional town of Pine Creek on the Stuart Highway, 190 km south of Darwin.
The Northern Land Council assisted with the structure of the agreement whereby the traditional owners will receive a royalty and Territory Iron will assist with training and mentoring indigenous men and women who may seek employment at the operations.
The agreement relates to the grant of mining interests including mineral leases 24727, 25087, 25088, 25152 and 25396 and development of the Frances Creek mine. (See map).
The tenements cover an area of 430 hectares over a strike length of 13 km and include areas where Territory Iron expects to mine in the next four years and beyond.
Territory Iron Managing Director Doug Stewart said the agreement with the Northern Land Council and the traditional owners was a positive outcome that would benefit both the Frances Creek project and Territorians as a whole.
“This agreement is a key milestone in the granting of mineral leases and allows us to accelerate activity at the project and to move closer to mining.
“It is anticipated that mining will commence this May and shipping of iron ore to China will take place in August this year,” he said.
Mr. Stewart said he looked forward to building the company’s relationship with the traditional owners and other indigenous people in the surrounding region.
About Territory Iron
Perth-based Territory Iron secured the Frances Creek iron ore project in the Northern Territory in March 2005.
The recently constructed Alice Springs to Darwin Railway passes through Pine Creek and at its closest point is 15km south west of the project area.
The mine’s reserves recently increased to 4.81 million tonnes, with total resources at Frances Creek now 9.73 million tonnes at 60.7 % Fe. The company has a memorandum of understanding with two Chinese steel mills, with one mill to purchase up to 800,000 tonnes and a second to purchase 400,000 tonnes.
Territory Iron also signed an agreement with FreightLink to provide transportation services to carry iron ore to the port of Darwin.
Plans for camp construction at Pine Creek are also progressing well and the pad for the stockpile area at the Darwin port (East Arm Wharf) has been completed and construction of Territory Iron’s conveyors has begun.
imajica said:at 4.20pm a special block cross trade(spxt) went through for 18,550,000 shares thats over 9 million bucks worth of shares - any ideas guys? whats going on?
is it instos buying up a large stake?
Hi, Not being able to find the operating costs does seem to throw a spanner into the works of the crunched numbers. Cost of development of a mine and purchase of rolling stock, may well exceed all the profits in the first year. Royalties have to be paid to Arafura Resources of $1.30 Lump and $1.00 Fines, per tonne.
It also depends on the results of increasing the inferred resource that is not all that much as yet.
Seems to have been significantly rerated the past 4 months. Overbought on stochastics, but that's not necessarily going to stop it atm. Not much else to tell....
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