Value in Afferro? Value in Afferro?, 22 Mar 2013
65p/C$1.00 at exchange GBX 1.55
So we have this junior iron ore company 105M shares, a MCap L$68.25/C$105M
Reportly, 50p is bandied around as the existing cash position (GBX$52.5M or C$81.875M), though suspect this is a little higher, as year end cash position was C$90M.
Still at SP 65p, we can say AFF assets are valued at 15p/GBX$15.75M or C$24.4M. Nkout has 2.0 BT’s of proven NI-compliant Iron Ore and Ntem maybe 200MT’s though, today officially unproven.
Two property Assets of Afferro with 2.2 BT’s Iron ore are valued at 15p/GBX$15.75M or C$24.4M.
InSitu Value of 2.2 BT’s Iron ore at C$135/T is C$297 Billion
The Market Valuation assigned AFF (C$135/T) is C24.4 Million for 2.2 BT’s Iron Ore or C$0.00008215 per tonne, not even 1 cent/Tonne, when the junior explorco’s avg is near 50 cents /tonne.
What is this number (0.00008215)? Less than One Thousand of 1 Cent?
Today we are valued at getting 8 cents for 1000 tonnes Iron Ore. Just a little cheap one would think?
At the 50c Junior Avg Prices for Iron Ore, the AFF MCap should be C$1.181 Billion or GBX $760M, and/or a SP C$11.24 or GBX 726p, compared to C$1.00 and 65p.
Is AFF’s real Value over 10x todays current market valuation?
Cheers, Mark