NicHow are we to find out at the end of Jan if MOL are to make a...

Nic

How are we to find out at the end of Jan if MOL are to make a profit on the Iron Ore.

The maiden shipment is not due till this month sometime. Anyone in their right mind would not expect MOL to show a profit on one ship load of ore. If you listened to Derek Fisher at the AGM he expects the Iron Ore to bring in $50mil for at least 5 years. There is every chance that they will discover more, the Geos are out there now.

Mol is in my opinion a long term investment, its average production of moly over a ten year time frame is 12-13mbls on a 10mtn through put.

The stock market is a forward looking market, we cannot predict with any certainty that costs or revenue will be accurate.

Assuming the forward costs and revenues are correct then the molybdenum mine should net $150mil and iron ore $50mil, total $200mil.

For a back of the envelope valuation for MOl is $200mil divided by 400mil shares = 50c the industry average PE is around 15. For this valuation we will give a 20% discount so 40c x 12 = $4-80.

Throw in Hanlongs vision to build a major mining house, they are already looking at other prospects. It is my opinion that MOL can turn into a very good investment.

For those who do not concur with my opinions by all means have your say, but to continually post in the negative is pointless. Buy into a company you believe in and spend your energy on that instead of trying to convert the faithful.

This my view each to his own DYOR