Member Info for Max111

Now I can sell, but getting NT to buy.

@HH, the transfer will be going to same shareholder, but under different company name since we will now own 80% of Windfield.

@HH, just to clarfify, there is no reduction in institutional shareholding. The company website will now be updated with a new TR1. Just transfer.

Just transfer, which means the 90% interest deal in Hamersley is now going ahead.

Don't forget, Howard Baker (who did the Resource estimation for Rio Tinto) we will be putting together a JORC resource for Hanc0ck within just 4-8 weeks.

@HH, you say, "get news a major share holder has sold out"

He hasn't. The 220M shares are getting transferred, which means the 90% interest deal in Hamersley is now going ahead. This is where all the valuation comes from, not Donovan 2.

@BB

No Donovan 2 resource was factored into the valuation. Only the exploration expenditure.

But Hamersley alone with 90% interest will now be:

Downside valuation:
74,000,000 tonnes x 0.5 Fe = 37,000,000
x£8/t = £296,000,000
x0.4 (to discount 60%, not 80%) = £118,400,000
x0.902 (UFO share) = £106,796,800
= 2.95p/share

Upside valuation:
245,000,000 x 0.5 Fe = 122,500,000
x£8/t = £980,000,000
x0.4 (to discount 60%, not 80%) = £392,000,000
x0.902 (UFO share) = £353,584,000
= 9.75p/share

At least today shows that the 90% interest in Hamersley deal is now going ahead. This is will cause a massive re-valuation in our SOTP valuation when adjusted for 90% interest.

https://www.rns-pdf.londonstockexchange.com/rns/4070B_1-2021-6-9.pdf

https://www.londonstockexchange.com/news-article/UFO/holding-s-in-company/15011647

@HH, If average market capitalisation per attributable tonne of iron of £8/t means DSO or pure iron, then fine I understand why they half our estimated tonnage.
This is what I want them to clarify.

Halving our est tonnage to account for DSO or pure iron, I get the following figures straight after increasing interest to 90% for Hamersley alone:

Downside valuation:
74,000,000 tonnes x 0.5 Fe = 37,000,000
x£8/t = £296,000,000
x0.4 (to discount 60%, not 80%) = £118,400,000
x0.902 (UFO share) = £106,796,800
= 2.95p/share

Upside valuation:
245,000,000 x 0.5 Fe = 122,500,000
x£8/t = £980,000,000
x0.4 (to discount 60%, not 80%) = £392,000,000
x0.902 (UFO share) = £353,584,000
= 9.75p/share

Then adjust for higher iron ore price (which Turner Pope said they will do).
Then reduced the 60% aggressive discount factor (as they said they would do).
Plus add valuation of other projects.

Then hopefully add JV ore contract mining which will then multiply the valuation.

From my understanding they are not trying to calculate for DSO or pure iron, just 50% Fe from our iron ore deposit.

I can understand why they apply the discount factor to the £8/t (ave market cap per tonne of junior companies that own iron ore projects in WA) to reflect the early development stage nature of the project.

However, they used a super aggressive 80% discount factor, when it was stated in Research Note 6/5/21 & 20/5/21 an aggressive 60% discount factor was used, which they are now looking to reduce below 60%.

@HH, you say, "Turner Pope use half the values you quote because they credit us with a 50% grade."

That's my point, why half our Iron Ore deposit estimate to get 50% Fe was already accounted for a grade range of 50-63% Fe as per page 28 of Company Presentation (and all previous stated figures).

@HH, the £8/t is average market cap per tonne of iron of several junior companies that own iron projects in Western Australia, not in ground value for pure iron.
Then they half our est tonnes:
“Our downside valuation of the Hammersley Iron Ore Project is based on an assumption that a 74mt iron ore deposit at a grade of 50% Fe is discovered at the project (37mt contained Fe), similar to lower end of the exploration target for the project.”
But our Iron Ore estimate was already accounted for a grade range of 50-63% Fe (see page 28 of Company Presentation). So there was no need to half it. This is what smiller spotted.
Then they used a super aggressive 80% discount factor, when it was stated in Research Note 6/5/21 & 20/5/21 an aggressive 60% discount factor was used.
Plus 150M tonnes high-case was used, when should have been 245M tonnes.

I’ve emailed Turner Pope 3 times now to update it and still no reply.
They have provided Research Notes for 3 other companies this week, but for some reason haven’t had the time to update our one!

And as soon as they update for just the 90.2% interest =

Downside valuation:
74,000,000 tonnes
x£8/t = £592,000,000
x0.4 (to discount 60%, not 80%) = £236,800,000
x0.902 (UFO share) = £213,593,600
= 5.89p/share

Upside valuation:
245,000,000 tonnes (not 150M tonnes)
x£8/t = £1,960,000,000
x0.4 (to discount 60%, not 80%) = £784,000,000
x0.902 (UFO share) = £707,168,000
= 19.51p/share

Then adjust for higher iron ore price (which Turner Pope said they will do).
Then reduced the 60% aggressive discount factor (as they said they would do).
Plus add valuation of other projects.

Personally I do pray that it is a transfer and that the deal to increase our interest in Hamersley to 90% is going ahead since it will mean we own 90% of:
Hanc0ck Ranges & Brockman.
= extra billions of £ in Iron Ore!

Before, I never dreamed we could get 90%.

Yes since we will own 80% of Windfield under the new deal, the shareholder of Windfield will need to transfer their UFO shares to different name.
I see it as a positive in both situations, since if sold, selling pressure off. If transferred, then deal to increase interest in Hamersley to 90% being completed.

Excellent :)

Yes Barrett :))))
It’s always when you least expect it ;)

Not trolling me? Suggesting I'm an insider? Not wanting me to post. Not wanting me to have a Twitter account.
You switched from being 100% positive about UFO to 100% negative about UFO. It's very telling isn't it?! lol

When did I ever say the 3M sale was a buy?!
Read what I wrote:
"the 3M sell went through at 15:08 and those shares and more were bought 10 mins later at 15:18."
15:18:10 = 910,798 buy
15:18:38 = 910,798 buy
15:18:53 = 911,047 buy
15:19:56 = 612,122 buy

So you just proved my point. You don't realise this is a market involving sellers & buyers, and only post about sellers! lol
Your intention to deramp is obvious.
And since you don't have anything to deramp about, you have chosen to try to silence me!
But no one will get rid of me. I am fully invested and will be here until mid-tier.

*you have now become my personal troll.