Hi Birdseye, I'll try and send off Mike Joyce an email over the...

Hi Birdseye, I'll try and send off Mike Joyce an email over the next few days and ask a few questions regarding Giralia's relative value - relative to exploration targets and relative to other similar iron companies. I wish I was able to hear the presentation to UK investors.

Its interesting to also compare this against a neighbour of Giralia and new iron ore producer, Atlas Iron (AGO).

Atlas current inferred, indicated and measured resources total 184Mt.

Atlas have an Enterprise Value of approximately $695million (or $845m Mkt Cap less $150m cash).

Equates to roughly $3.77/ tonne which is probably still undervalued for a producer, and all the best to them.


So we have Atlas with 184Mt resource with an Enterprise Value of $695m versus....

Giralia - which has roughly the same level of 'known' resources with an Enterprise Value of approx $183m. We also know that GIR is aiming to increase its known resource to well over the 1,000 Mt mark (as suggested from previous post possibly around 1,500Mt or so) If you wanted to be very conservative you could even just assume 500Mt if you take off the longer term but large Earaheedy project. I wouldnt be excluding it from my analysis however.

So again, what happens when Giralia moves into production - should they also have a $EV/tonne of $3.77/tonne like Atlas? Again why not if they are able to gain similar port access, haulage options etc.

Apply this to a total resource of 1,500Mt (or even just 500Mt).

The numbers start to get very scary indeed - $5.6 billion market cap? (or even $1.88 billion based on 500Mt alone) - no way .....? All I know is that GIR is not worth an Enterprise Value of $183m.

Again be patient - asset plays can go unnoticed for some time (years even).