Afferro Iron Ore 5 Cents/Tonne "Analyst Alison Turner said: “With two billion tonnes of iron ore at Nkout and an imminent maiden resource at Ntem we believe Afferro remains significantly undervalued at current levels. “
Forget the $90M cash hoard this moment, wouldn't 200 million (200p) for 2 Billion tonnes of Iron Ore be a good deal, for anyone? What's that per tonne?
Wait a minute....is that 10p or 15 cents per tonne? What was the valuation of the Hanlong/Sundance Deal?
Wait a minute...a now reduced $1.3B Deal? “The maiden resource brought the Mbalam project’s total hematite and itabirite resource to 4.49-billion tons. The project currently had a capital cost of some $4.7-billion” 29 to 30 cents per tonne.
What are Iron Ore prices trading at?
Wait a minute...so prices have almost doubled from last Sept but are in correction mode.
“Prices of imported ore with 62 per cent iron content at the Tianjin port fell 2.4 per cent yesterday to US$145.20 a tonne, Bloomberg reported, citing the Steel Index's global benchmark. The index has lost 8.6 per cent from a 16-month high on February 20 to US$158.50 a tonne after increasing from US$86.70 in September.”
So even at $100/t end market, Afferro’s 2 Billion tonne Nkout only asset, has a insitu value of $200 Billion worth of Iron Ore.
So at a 200p buy-out, our Iron Ore is valued at 10p/15 cents per tonne.
Today, at 72p? 3p or 4 to 5 cents per tonne. Now include the Ntem asset and Cash!
Just a little undervalued? Cheers, Mark