The average EV to JORC DSO depends on the stage of the company....

The average EV to JORC DSO depends on the stage of the company. On my watch list of 17 IO companies the average EV to JORC is $8.73, however, some of those have large Magnetite deposits also. Of the 10 or most junior explorers with a JORC the average is just over $1.50 a ton.

I actually have GIR at $1.22 a ton Hematite (EV $162m / 132m tons), but I do not think all of that is DSO grade (57% +). (Anthiby and McFee Ck are about 53%)

In the presentation GIR conveniently provide the recent takeover valuations for DSO operations:

Sinosteel/MIS $1.3billion 172Mt $7.56/tonne
Lion/MIN/Polaris $143million 42.6Mt $3.36/tonne
BHPBilliton/UMC $204million 158Mt $1.29/tonne
Atlas/Warwick $82million 26.4Mt $3.10/tonne

If GIR had all their DSO tons in one location close to infrastructure then I'd be happy to rate them much higher that $1.22 a ton, but I can't just yet.

The upside I think is from exploration success. Just about all of their deposits are open, or expanding. They are absolutely sure to expand their DSO holdings imo. How much is a pluck though.

The summary of their current projects they provide make them look like one of the most prospective IO explorers out there.

Western Creek (100%) Mar’09: 29% increase in JORC resource to 52.4 million tonnes (‘Mt’) next to BHP Newman railhead.

Anthiby Well (100%) Mar’09: maiden JORC resource; 37.6 Mt, 220km to Onslow port.

Yerecoin (100%) Mar’09: first drilling, Exploration Target; 200-250Mt, Scoping Study in progress, existing rail within 1km.

Beebyn (100%) Aug-Sept’09: best drilling results to date; 28m @ 59.1% Fe at Beebynganna Hills, 3rd party rail proposed to ‘doorstep’.

Mt Webber-Daltons JV (75%) Aug-Sept’09: first drilling, discovery-first JORC resource; 40Mt, low alumina, trucking distance to Port Hedland. Scoping Study in progress.

McPhee Ck (100%) Sept’09: first drilling, discovery; 90m @ 58.6%Fe at main range, resource drill out for initial JORC resource by end 2009. 220km to Port Hedland.

Earaheedy (100%) Nov’09: 120 hole drilling program, results to come.