Lets compare the FWR valuation offered to derive our own NOT SP valuation. (comparable assumed value)
-FWR offered $1.00/sh, 214.6 sh outstanding, a $240M deal all inclusive
- CLF est 30-60MT Chromium, 12-24MT Ferrochrome at $0.80/lb
- 12MT Ferrochrome = $21.16B, 24MT = $42B
The in-situ value FWR shareholders receive is 0.5 – 1.0% value for this Resource.
Whether you agree or not, from where FWR started from (26 cents) in this bidding process, 26 cents to a dollar seems good, a 4 fold increase but historically this is an extremely low valuation for any metals resource. I would say 10% (5-10%) would be an average paid for in-situ resources over the past decades.
Now, lets look at NOT from initial resource estimates:
Blackbirds 15MT Chrome = 6MT Ferrochrome = $10.6B in the ground value
Eagle One original 43-101 est 3MT (using $1200/T) $3.6B value back in 2008, now Eagle One estimates are a minimum 3x larger, maybe extending to 5x original calcs.
We’ll use 3x which now gives us a Eagle One resource worth $10.8B
NOT Shares Out – 173.5M sh
Using the FWR Valuation Paid…
NOT at 0.5% in-situ = 61.5 cents
NOT at 1.0% in-situ = $1.23
NOT at 10% in-situ = $12.32
(these calcs are only for Eagle One and the Blackbirds – excluded AT-12, Vanadium, Gold, Eagle 2 etc)
My point here is in no way would I except 1.0% or less for our RoF assets!
CLF are making off like Bandits to say the least paying < 1.0%.
(Didn’t Voisey’s Bay end up going at 40%)
Yes, I like 40%, NOT at $41.48
Cheers, Mark
