GIR have many productions being drilled atm and with $70mill in the bank this will only increase. They often give a resource "target" in descriptions of these projects. • Beebyn-Weld range • Western Creek • McPhee Creek (ann today) a conservative JORC later this year when the I's get dotted and T's get crossed 100mill tonnes resource is not unreasonable. A number cruncher associate says that good DSO Fe companies are valued by the market at $10-$30/t in the ground. Lets go with $10/t. 100mill tonne in the ground JORC would suggest mkt cap at $1B. Current mkt cap is $330. This would suggest sp $5-$6.
Now lets put in Earaheedy. They "target" 1 billion tonne resource over a strike of 130km. Even if it ends up at 500mil tonne the numbers get scary. I will not get ahead of myself so I will say that my target by end '08 is $6 - $7/share.
There are MANY other fingers in pies as well. I am in long. I welcome comment on my "back of the envelope" calculations Cheers
GIR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held