What has drawn me to FNC in the first place is the massive amount of Magpie titanium.
Earlier, on this Message Hub, MaCloud and I (independently of each other) put out a little
basic arithmetic comparing the titanium-in-the-ground market valuations of Magpie compared
to a handful of its established rivals.
I’ve begun a more detailed examination of the most recent numbers. Even before finishing, I’ve
concluded, no matter how you slice it, the hard numbers demonstrate (just in terms of titanium)
a wild market undervaluation of Magpie whose dimensions are far and away off the charts.
I’m talking in the neighborhood of 100 X or possibly more of the entire FNC price for Magpie
titanium alone (giving zero credit for anything else in all of FNC).
My point is, if you take the time to calculate the comparative value of Fancamp’s resources
(however you want to look at it, titanium or anything else) you come to the conclusion that our
undervaluation will be diminished by the recent PP but not to any degree that really matters.
Look at it this way: Does it really make a difference if you make 150 X your money, compared
to a diluted 125 X your money? It doesn’t; because neither one is going to happen.
Let’s be real. Our fundamental undervaluation is so extreme, in the final analysis, we will never
be allowed to keep the entire future corrected revaluation. Obviously, long before anyone here
will be allowed to pocket the kind of multiples I’ve been talking about, sorrowfully, a big fish will
soon gobble us up.
Nonetheless, being the cheapskate I am, I tend to align myself on the side of those who argue
against unnecessarily sharing the wealth with newcomers. But that’s far from the main point.
The real question is how do we quickly wake up the markets to the reality of the wealth we already
have, without being blind to the designs of the predators who, undoubtedly, are already getting the
scent of something delicious. Raising cash, besides diluting our holdings, gives us breathing room
(not much) and a small measure of operating time and space. Maybe, on balance, this is 51% bad,
49% good. Either way, I’m not getting real excited about it.
As I understand it, Smith prefers reciting hard facts to shaking hands and issuing well-timed well-
written press releases. That’s his way. I don’t think we’re about to change it. As a consolation, the
money he raised will buy us yet more fascinating drill results, probably in-artfully articulated.
