TRF 0.00% 1.9¢ trafford resources limited

riu explorers conference

  1. 973 Posts.
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    I wasn't able to make it to this conference, but I got a copy of Finchy's presentation from TRF. It makes for interesting reading and I thought I should share it with everyone.

    The presentation is titled "Crash Course in Company Valuation"

    It then goes on to value TRF through assets "projects", cash etc. They give the following valuations:

    Wilcherry Iron project through IFE: 63c at 45MT of iron ore
    Cash: 14c
    Zinifex Joint Venture: 6c
    Lynas Find: 5c
    Board: 5c
    Total: 93c

    This was done when TRF was 63.5c. This highlights the difference in valuation from the current market.

    Then they went on to mention a number of upside values that wasn't included in the 93c. These were:

    - 20% free carry from IFE production
    - Gold at Wilcherry Hill (everyone seems to have forgotten about this)
    - IOCGU at Wilcherry Hill (Mawson)
    - Minotaur Joint Venture
    - Montezuma Joint Venture (Ni and Au)
    - Discovery potential of the 35,000 metre IFE iron drilling and re-assaying
    - Uranium (Golden Gate)
    - Manganese (Pier Prospect)

    Not to mention potential discoveries and share growth from Lynas and Zinifex JV.

    IMHO, totally ignoring the extras, I would be surprised if IFE didn't prove up multiples of the 45MT JORC of magnetite. It is certainly looking feasible from the current drilling results. Hence just based on this, the 93c will look like bargain of the century. Also the amount of land they hold detailed in the presentation, surrounding Wilcherry Hill, to the west of Wilcherry and to the west of Port Augusta, it looks like they have locked up all the land surrounding Wilcherry and should have great potential to find something else of significance. Still modest guys, stating the bare facts of what they have.

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