Napkin Math Here are some numbers that are food for thought.
| Total Iron Ore | Dilution | Shares |
| | current shares | 175,577,548 |
| | outstanding warrants | 45,000,000 |
| | outstanding options | 16,950,000 |
| | Current total | 237,527,548 |
| | | |
| | | |
| 750 mt | 750 mt iron ore SARI | 16,000,000 |
| 2.75 bt | 2 bt iron ore SARI | 40,000,000 |
| 5.75 bt | 3 bt iron ore SARI | 50,000,000 |
| 11.75 bt | each add 500 mt SARI | 120,000,000 |
| | NI 43-101 potential total | 226,000,000 |
| | | |
| | | |
| | plus CIF debentures | |
| | 19.9% max potential total | 92,241,982 |
| | | |
| | Total Potential Shares | 555,769,530 |
Listed is the potential future share dilution based on the upcoming NI43-101 (numbers mean nothing if resource determined by company not to be economically viable)
Minimum share dilution would be approx 260 million shares for 1 billion tonne iron ore and max dilution would be 556 million shares based on 12 billion tonnes.
Average enterprise value per tonne of iron ore of other companies in the region with defined resources is $0.52/tonne.
Therefore if the total iron ore resources WAI discloses is 1 billion tonne (I would be shocked if less than this) it values the company at 1billion tonnes X $0.52/tonne / 260 million shares = $2.00/share
Therefore if the total iron ore resources WAI discloses is 12 billion tonne it values the company at 12 billion tonnes X $0.52/tonne / 556 million shares = $2.00/share = $11.22/share
The caveat being the purity of the resource, access, etc. and if the enterprise value assigned is accurate.
Interested what others think of this math. Is it reasonable, accurate, or out to lunch?