Spoke to Company
Called the company yesterday. Would like to share my thoughts.
The company shares directors, offices and phone line with 3 other juniors, so when I selected someone to speak to they actually asked which company do you want to talk about. The benefit of this is obviously that it slashes overheads.
I mentioned that oil and iron ore were strange bedfellows and that judging by the sp response there would be more interest in focussing on iron. They explained that as a listing requirement they could not cease to be an oil company but were very committed to iron.
I asked where we went from here with the Girard property? Are we waiting for a JV partner? They said that announcements will follow shortly and it seemed that they were going to press on asap with airborne survey.
They confirmed that the licence is only 30km from adriana and that they would benefit from the Wuhan deal.
I asked if DSO was a possibility given the high gradings obtained from grab samples and they didn't rule it out. Said they were hopeful.
In terms of valuation I think it makes no sense to look at the charts given that the property was only acquired a few days ago. this is effetively a start up and the market still hasn't found it's value. I'm hopeful that it will rerate to around 50cent in the near term. Fully diluted that would give a market cap of around $25m. I'd expect share count to double to around 100m fully diluted and the sp to $4 over the next 18 months if DSO is viable and the world economy is still robust.