GIR 0.00% $5.43 giralia resources nl

current share price, ev and dalton's npv

  1. 41 Posts.
    First time I have posted on these forums in a long long time. Ive been riding with GIR since its days in 2001 at 8.9c. Used to post on the old Ozestock forums. Good to be back.

    I generally dislike junior resource companies - built on hopes, blue sky etc add to this the unpredictability of global commodity prices.

    However Giralia has always been smart in its approach, diversified and exploiting tenements for immediate gain. Seems to run a completely different junior explorer business model than most.


    At current share prices and with the scoping study of Dalton's JV already undertaken, its quite extraordinary of what you are getting at current prices.

    Wangchung briefly eluded to this in an earlier post.

    Current EV: $180m approx

    Dalton's Base Case NPV $170m (based on conservative road haulage option)

    GIR's 75% Share: $127.5m

    Adjusted EV: $180m less $127.5m = $52.5m


    So at current prices, you are purchasing the following current known resources for $52.5m:

    - Western Creek (52.4Mt @ 56.7% Fe)
    - Anthiby Well (37.5Mt @ 53.6% Fe)
    - McPhee Creek (52.1Mt @ 56.0% Fe)
    - Beebyn (7.2Mt @ 57.2% Fe)

    So the remaining 149.2Mt JORC resource for $52.5m or a $0.35/tonne. As per Carmichael's Research report the explorer average is $1.28/ tonne.

    Do the numbers yourselves if you add to the JORC resource the conservative estimate of an additional 100Mt (@57% to 60% Fe) on the western side of the range at McPhee Creek.

    Also do the numbers again if the NPV increases for Dalton's due to rail access or increased production per annum.

    Cheers



 
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