what is happening atcap, page-3

Metalo,

I suggest you do your own research but in a snapshot:

* Hawsons is the main asset for CAP.
* Hawsoms has a NPV of $3.2 billion, based on an iron ore price of $88 USD per tonne and has considerable exploration upside to increase the resource (1.4 Billion tonne to possible 6 Billion tonne). Plug in a iron ore price of USD $110 and a 3 billion tonne resource and then see what NPV you get
* Hawsons owned 60% by CAP and 40% by BMG (in liquidation).
* An investor in BMG called ASI invested more than $16 million into BMG, with Hawsons the reason they invested.
* The same Director of ASI is a Director of Silvergate.
* Silvergate purchased 8 million plus shares in CAP from Atlas Iron (AGO) at 42c per share (off market transfer).
* Silvergate still actively buying on market, now own more than 15 million shares in CAP.
* IMO, Silvergate wont stop buying until they reach the 19% plus mark.

Hawsons is a premium project that can provide longterm, high quality magnetite at the lower end of the cost curve.

My only concern at the moment is our cash balance and cash burn, what will come next, a payment from our new J/V partner or a capital raising? The fact that 8% of CAP changed hands at 42c should help put in a floor price for a capital raising (I would hope) but if Nick and the team at CAP HQ are doing their bit, then we should not need a capital raising.

For a bit of a laugh, a very rough and quick calculation:

Take the Hawsons current publised NPV of $3.2 billion. 60% is $1.92 billion (CAP level of ownership). Then take off another 75% for dilution, risk, etc, etc and you have $480 million.

CAP has 105 million shares on issue, hence 480 /105, equals SP of $4.50..............and we are at 44c