investec report

On the IOH website is the latest report by Investec dated 6 Feb in which they attribute a value of $2.22 per share. It goes into detail as to how that is made up from the various component parts. Given this is issued 4 days prior to the Trading Halt, it would surely be difficult for a Board to recommend any offer that would value the whole at less & stupid for any acquirer to lob a bid likewise for less. Here is an extract that relates to Iron Valley:

"Iron Valley Project (100% Owned): The project is located within close proximity to the RIO and BHP Yandi mines, arguably the most profitable mines for each of the majors. It also runs into FMG’s new Nyidinghu deposit to the north east. Currently, the JORC resource totals 259mt (indicated and inferred) at average grades of ~58.3% Fe, 5.4% SiO2, 3.3% Al2O3, 0.17% P and 6.9% LOI. The resource includes a high grade component of 143mt at 60.8% Fe. Iron Valley is a low stripping ratio project, largely drilled out, with future work to concentrate on in-fill drilling and Mining and Environmental studies. We value Iron Valley at A$172m (after risking to 40%) assuming a 7-8mtpa operation beginning mid 2015 and a low capital cost of A$375m on the assumption of sales at the mine gate. Wah Nam or FMG are likely bidders."

Good luck to all holders, we may well see a run up of perhaps another dollar on where we've been trading recently.