Ann: Drilling Commenced , page-8

I am not so sure whether DSO will pump up the sp.
The FWL non-executive chairman Bob Duffin has a lot of experience in this strategy as an executive chairman at Western Plains Resources (WPG). They are far down the track of establishing a DSO operation, but the sp is still hovering at the 6 year average of 0,75-0,80 A$.

My personal view is that the 4 parties are very interested in a longterm involvement in the MPI business and that the crux here is the valuation of the company and its NPV or DCF.
If Brett says we are worth a minimum of 100 mln A$ (derived via several calculations acc PWC looking at the present proven inferred resource of 572 mln tonnes Fe at 27,5%), the parties might counteract that with saying that FWL just has a Marketcap of 16 mln A$ in order to end up somewhere in the middle (50 -60 mln A$ ??).
It is a relative simple job to add up a couple of hundred millions of resources (if it is there offcoarse) to reach the 1 bln tonnes-mark. The valuations are more than doubled then (more than 200 mln A$), also because of the lower Capex per tonne!
And a resource of 1 bln tonnes is a real big business and FWL will be on the map then!!
This will help to negotiate a better entry-price for a strategic investor and still have plenty of upside potential for both FWL shareholders as well as the investor(s).

I would stick to the core-business, which is the development asap of the MPI-process!

regards,


DYOR