LCG 0.00% 6.0¢ living cities development group limited

safer bet is wpg

  1. 5,376 Posts.
    lightbulb Created with Sketch. 2
    FWL: i initually has a long term target of $1.40, but i prefer WPG, also has a potential huge magnetite resources of +500mln (50 years mine life at 10mtpa).... And from its hermatite iron ore alone, production might be online as soon as 2008:

    1/ Bankable feasibility study any time.
    2/ Ebitda might be as much as $50mln per annum for at least 10 years.
    3/ Huge +500mln magnetite deposits: potential for up to 10mln tonnes per annum for 50 years.
    4/ Still very low market cap of less than $100mln versus potential $50mln EBITDA per year (production starting from as early as 2008):

    + Broker's report said margin is $21/tonne back in October 2006, but price has been moving higher. If the company to produce 2mln tonnes at $25 margin. That is a potential of $50mln earning (EBITDA). Refer to broker report below:
    http://www.westernplainsresources.com.au/announcements/Research/2006-10-23%20%202006%20October%20Veritas%20Report.pdf

    + Bankable Feas study due end of June (as stated in Mar07 quarterly report)http://www.westernplainsresources.com.au/announcements/QuarterlyReports/2007-04-26%20March%202007%20quarterly%20report.pdf

    + Company latest presentation: http://www.westernplainsresources.com.au/announcements/RecentAnnouncements/2007-06-18%20Investor%20Presentation.pdf
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.