i love you , sweet sp to my ears. they will sell kallak with ruoutevare and i believe as they are drilling ballek , ballek will also be put into the kitty. the 20% left over will enable bem to jorc up its other sites and then sell these on. nearly there , nearly there.
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
Mr Plodge (great name) is correct, the published spread on nearly all AIM shares is misleading to say the least. The best way to establish a buy or a sell is to do a dummy buy/sell to establish the TRUE spread. Today, anything around the 7.35/7.40 mark is a sell and around the 7.70 and above is a buy. There are exceptions to the rule however!
I wouldn't get too excited about a joint announcement regarding a mining concession and transport. The transport discussion may include Kallack, it may not. The points being discussed at this meeting that may be of interest are:
Request from the provincial government for an opinion on the mining concession for Kallak No. 1
Request from the provincial government on the opinion of the County Transport Plan for Norrbotten 2014-2025
Housing Plan for the municipality of Jokkmokk
So they are reviewing their transport plan and housing plan for the area. Maybe a mining concession could influence these plans, maybe not.
Does appear so yes. I personally would be expecting nice rises here if the decision was really close but you never know for the first time ever on aim there may be no leaks and we may just rise quickly. Unfortunately this would have to go boom before I get excited.
Is the fact that the decision is for BOTH the licence and transport links a positive sign? If this was bad news about the licence, why also proved an update on transport links...? Time for a top up, methinks...
nice , right on payday , oh well looks like i shall have every thing crossed on monday for luck . getting close now to deciesion time , might get exploitation locience before xmas. i'm going to need a shed load of worry beads.
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