I am a holder and like this story so this is a level post here don't take it the wrong way.
The comparisons to SFR are way off. SFR has head grades over 5%. You may think that a 1% to 5% difference is not that much but when you consider cash costs for every tonne of dirt you pull up with SFR you get $500, with most of the bulk tonnage copper operations, you get $100. When bulk commodity mining, $500 a tonne (compared to any other bulk commodity) is a stellar return - hence the MCap for SFR.
Want a good comparison for a circa 500,000 tonne established mine at 1% try AVI. MCap around 30-40mill. That one is too cheap as well and looks a real steal at this price (I don't hold but have been close to pushing the buy button on that).
Personally I think SFR is an excellent resource that is probably overpriced for its stage of development but there is no comparison here sorry.
Most of the copper prospects on the ASX have head grade around the 1% mark - and many of the good ones much bigger resources or exploration prospects than this mine.
I am very happy with the developments though, this should add some good value to the holdings.
Melua is spot on with the calcs there guys. At 500,000 tonnes it is probably worth about $100-150mill - and we don't have a JORC yet. There is some exploration upside.
Being close to China and infrastructure surely must add a few points there too.
This is not a world class resource don't kid yourselves, but it is a very good start and should add some good immediate value to ROS.
I am in this solely to see what Ross Smith can do - and I am impressed so far.
Personally I am more interested in what comes out the the silver because if the head grades and tonnages are even close to what has been speculated on here this could really fly.
Grade, grade, grade people. High grade silver in this market in any commercial quantity and it will be all on...
ROS Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
