Australian (ASX) Stock Market Forum

YML - Yilgarn Mining

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Man I gotta start looking at the oppies of the stock that I consider massively undervalued.. never traded oppies but they look like a nice place to make/break a fortune.

:)
 
YOUNG_TRADER said:
Guys, some research today has led to a few ammendments/additions
2 Main changes to be aware of Marilliana is only Avg 15m thick not 60m as drill assays that are due early 07 will show and scoping study on pre-feasibility numbers for Carr Boyd are due out 'Early 07' too.

YML
Yilgarn Mining

Shares: 60m + 20m 25c 30/6/07 opies

@20c Fully Dilluted Mkt Cap = $10m
@30c Fully Dilluted Mkt Cap = $24m
@40c Fully Dilluted Mkt Cap = $32m
@50c Fully Dilluted Mkt Cap = $40m
@$1 Fully Dilluted Mkt Cap = $80m
@$1.25 Fully Dilluted Mkt Cap = $100m
@$1.50 Fully Dilluted Mkt Cap = $120m

Has $4.5m in the Bank so no need for funds anytime soon


Projects

1. Rose Dam
Used this Gold project to generate $6.6m in cash, good cash cow and shows management knows how to get a project going


2. Irwin Hills
JV 40% YML 60% MRE, JORC 20Mt@ 1%Ni (Nickel) + 0.12%Co (Colbat)

High levels of Chloride so having trouble getting MRE to agrre to Toll Treatment at its Murrin-Murrin Plant, although its Laterite Nickel its not that bad as MRE is the Laterite King!

MRE stated in their last Qtrly that "Preliminary mining studies are underway to determine the viability of direct trucking of ore to Murrin Murrin plant"

3. Carr-Boyd
YML earning 51% from TIR (Now part of CSM Cons-Min) can earn up to 90%

JORC 600Kt's@ 1.4%Ni + 0.5%Cu all within 100m of the surface so open pittable!

Using an EV of $5 lb Nickel and $2 lb Cu this first pass JORC gives the deposit an In Ground Value of over $150m

A full scoping study type feasibilty report is due "Early 07"


4. Marillana - This project is the SPEC KILLER!

Its an Iron Ore tennement 2kms west of the Brockman Deposit (225Mt@ 60% Fe)

Its old Hamersley Ground who outline a STRIKE OF 10KM's! Grading an avg 60% Fe! Width is probably 350m Avg and thickness of the Iron Ore is 15m Avg

Our Estimates so far are 240M Tonnes of Ore Grading 60% Fe
If we attribute 5% we get 12Mt@60% Fe
Use an In-Ground Value of $5t = $60m NPV
$10t= $120m NPV
$15t= $180m NPV

But Hamersley walked away from it 20years ago becasue the deposit is not at surface, its covered by 50m of top soil which is bad, but given current Iron Ore prices (ADD ANOTHER 10%) and the Sheer location of the deposit!Have a look at the presentations its surrounded by BHP, RIO, FMG and Hancock Mining!

Whats also very important is that BHP's Railway runs throught the deposit, so YML could feasibly only have to dig it up and truck it 2-3kms to the BHP Rail Line which runs straight to the Ports and given FMG's recent win in the Courts to use BHP's line I can't see why YML can't as well

East Sunrise (100% interest), 35 kms south of Laverton
Historical exploration has returned promising drill intersections including 14m at 10.2 gpt gold. Further drilling is planned for early 2007. Just food for thought.

Kanowna South (Earning 70%), W.A.
Drilling to commence shortly for Gold,

Plumridge (Earning 60%), W.A.
JV with Western Areas for Mineral Sands, looking to do some drilling in 2007


Byro (Farmed out 70% Free carried 30%), W.A.
Mithrill farmed in and should do some drilling by 2nd Qtr 07, following up on oxide intersections of Nickel & Copper,


Ravensthorpe (100%), W.A.
Grounds near BHP's Ravensthorpe project, apparantly prospective for Zinc/Lead,


Attributable Value

Irwin Hills @$2.50lb Ni =$50m, YML 40%= $20m
Remember Laterite (low grade) No Cap-Ex as can be treated at JV partner MRE's Murrin Murrin Plant,


Carr Boyd @ $5lb Ni + $2lb Cu = $150m, YML's up to 90%= $135m
JV with Cos Min, Excellent Open Pittable Options and scoping study due very soon!



Marilliana @5% and @$10t= $120m,
Elephant Ground, possibly only 5% of total size, excellent Infrastructure with BHP Rail Running Straight passed deposit! 50m of top soil


Total = Approx $275m or $3.45c a share

I think my NPV's have been pretty conservative but am happy to discount the value I got to by another say 80% ie $3.45c x 0.2 = 70c YML


Undervalued or what? Thoughts?
Click to expand...
Just on the Byro Project (prospective for nickel and copper), Mithrill will be spending $2 million to earn 51% of this project. To go to 70% Mithrill will spend an additional $10 million. Mithrill must be pretty keen to be proposing to spend this much on YML's project. Take into account YML's cash levels and Mithrill's JV proposal on this project alone (up to $12 million), the combined figures could add up roughly to YML's market cap on this project alone when added to YML's cash levels of around $4.5 million.
YML's 100% owned East Sunrise |Project also looks interesting on the basis of previous historical exploration results (e.g 14m at 10.2 g/t gold). Other mining companies could float on the basis of these 2 projects alone.
Its amazing how YML also has its nickel and copper interests as well as the Marillana Iron Ore Project which as YT has already stated could well be the spec killer.
I intend holding both my shares and options for a while yet. The potential is great on many fronts.
DYOR
 
watsonc said:
What will YML do today. Consolidate further? Hold its position? Lose ground?
Click to expand...

YT said that it has blue sky potential when it goes past 27 cents (its previous record high). I agree with his comments. After such a strong 40% on Monday on a very weak day for the market, yesterdays move was a positive in my opinion. It finished up for the day and didn't give back any of the day's previous days gain. Hopefully, another positive day is looming.
DYOR
 
watsonc said:
What will YML do today. Consolidate further? Hold its position? Lose ground?
Click to expand...
You now have the answer. Seems to have run out of buyers. No real keen sellers yet but the stop loss arrangements of the day traders are about to come into play if some buying does not emerge soon.
 
nioka said:
You now have the answer. Seems to have run out of buyers. No real keen sellers yet but the stop loss arrangements of the day traders are about to come into play if some buying does not emerge soon.
Click to expand...
Its looking a bit weak at present following its recent strong rise. This stock still has good potential though.
DYOR
 
gordon2007 said:
I think if there is another low then I might just have to buy into it.
Click to expand...
Its now down to 24 cents on very thin volume. So the predicted blue sky potential may have to wait a little while.
DYOR
 
nioka said:
Now is your chance!!!!!!!!!!!!!!
Click to expand...
Buying starting to increase at 24.5c with sellers at 26c. A fall on low volume may not be a real sign as to where its heading. Recent up days have been on high volume.
DYOR
 
In regards to post #202 by youngtrader, what on earth does all that mean?

Can anyone put that information into laymans terms.
 
greggy said:
Its now back up to 27c. What a ride.
DYOR
Click to expand...

That was me :eek: - Wish I got it at .24 - It's a red day for resources, relatively low vol for yml so I figure I might as well top up before the ann comes out
 
gordon2007 said:
In regards to post #202 by youngtrader, what on earth does all that mean?

Can anyone put that information into laymans terms.
Click to expand...

The post by Y_T is excellent and the only but is, that $4.5 million in the bank is a paltry sum where mining development is concerned. Markets are turning negative on miners, though YML has a balance through being in the best sector "Iron Ore". Development of a mine may cost $50 - $65 million for an open-cut mine and very much more where Longwall or Underground mining is concerned. Partners etc., may chip in some but more needs to come from somewhere.
 
mrWoodo said:
That was me :eek: - Wish I got it at .24 - It's a red day for resources, relatively low vol for yml so I figure I might as well top up before the ann comes out
Click to expand...
Welcome aboard. Most of its turnover today has been at the 29-30c mark.
DYOR
 

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