RE: Re a few more away13 Apr 2021 15:38
Hi cooking. For the upside valuation they should have used what they stated as the high case tonnes of 245 (not 150).
Therefore:
245,000,000 x 0.5 Fe = 122,500,000
x£8/t = £980,000,000
x0.2 (to discount 80%) = £196,000,000
x0.51 (our share – 49% Windfield) = £99,960,000
The upside value is considerably higher than what they have entered as £61.2M.
The Total SOTP Upside Valuation should be £121,660,000 (3.55p/share)
Once Hamersley's discount factor gets reduced to 60%, then 6.5p/share.
Then a JV will add much more to the share price.
Then have to add all the resource estimates from all other projects as we get results from drilling and then add JV's.
UFO has massive upside potential and is currently priced below the downside valuation = bargain!