How much is the iron worth?I believe Neo had a good stab at valuing the iron - apart from the fact that he probably massively understated the numbers.
The 50/50 deal is all about getting a worthwhile deposit to work: the combined property should have approx 150mt of rock bearing between 25% and 33% Fe.
Currently Aussie iron bearing rock benchmarks at approx $120 on the spot market, but the Fe concentration is double what we've got in Chile. I'm not sure what 33% Fe rock trades at......but if you assume that ANX can make, say, $5 per tonne then you have an asset value of a fairly sexy number.
On the positive side, San Gab is about 6km from a railway line and less than 20km from a deepwater port. Further, Chile couldn't be better placed for sailing to Asia - so the transport costs are much lower compared to either Aussie or Brazilian miners.
The other Chilean deposit (IHA/MHA) probably grades at lower twenties % Fe, but there could be as much as 2,700mt of the stuff! And the fact that an iron major is already committed to investing $15m in exploration is fabulous news.
In 1 month we'll be stock holders in a producing gold miner throwing off approx $1.5m per month that also has a decent slice of a decent Chilean property that is being investigated and explored with someone else's money - it doesn't get much better than that.
You would have to say that the stock should be heading well over $1 by Xmas