"It was a very good day with lots of information and helpful discussions.
After the municipal board meeting I attended a meeting with the councilor and technical manager in a real estate matter. Since I was at a meeting where we discussed how we should continue working on socioeconomic studies on the question of a possible mining establishment in Jokkmokk."
Kallak North - Mining concession, we can add the new JORC tonnange unless mountain state have take the decision.
If Kallak North and Kallak southern is stuck together, it requires a new mining concession (it becomes the same thing if they do not stick together), for "Kallak south" only, the on at Kallak North is valid in which case.
Drawing a comparison with Northland Resources a valuation can be developed.
EV = £430m Iron ore:
Near production = 176Mt (no discount to EV)
Measured and Indicated = 193.3Mt (32% discount to EV)
Inferred = 144.8Mt (70% discount to EV)
From this it can be concluded a production tonne in the ground is around £1.20/t. A Measured or Indicated tonne is 83.3p/t and an Inferred tonne is 36.8p/t. A further discount is applied to non-JORC assets of 90% giving 12.3p/t From this it is possible to value Beowulf on the stock market and highlight its true value.
Inferred = 131.6Mt + 140Mt = 271.6Mt which is £100m
Non-JORC = 230Mt up to 468Mt = £28.3m to £57.6m
Giving a total value now of £128.3m to £157.6m
With the whole deposit JORC'ed to Inferred this becomes 600Mt + 140Mt = 740Mt which is £272.3m
Measured and Indicated will further add to this and take a 600Mt deposit to £500m with a 140Mt Inferred at Ruoutevare on top giving a total of £551.5m
This does not represent the premium paid for by a buyer. Currently an Inferred tonne will typically sell for £0.50/t at 36% premium, implying that a Measured or Indicated would sell for £1.13/t in the case of a buyout of the resource. With an Inferred the iron assets will sell for around £370m and with Measured around £750m. This gives a dividend after corporate tax and Beowulf keeping 20% of the sale:
Inferred JORC Kallak and Ruoutevare = £1.18/share
Measured JORC Kallak and Inferred Ruoutevare = £2.40/share
That would be a bit far fetched. No way would clive buy 10,000 shares. I think he only does freebies. We could get a couple of other updates but knowing our luck the place doing the test mining analysis will blow up and the outstanding assays will get contaminated with cobwebs. Andee - 2025 -isn't that the combined age of the board of directors?
brilliant so your not expecting extra tonnage or assays then? Im not sure you have put enough emphasis on the SAMI causing problems and you didnt mention any illegal drilling without prior plans. Maybe you should put CSP share purchase of 10,000 shares?
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