Zanaga Iron Ore Co (LON:ZIOC) - A 57% resource upgrade
Sep 07th 2012 - Edison Investment Research today published a report on Zanaga Iron Ore Co (ZIOC.L, LSE:ZIOC, LON:ZIOC) entitled "A 57% Resource Upgrade". In summary, the report says:
Zanaga Iron Ore (ZIOC) announced an upgrade in JORC-compliant mineral resource for the Zanaga iron ore project (ZIOP), with the overall tonnage rising 57% to 6.8bn at 32% Fe grade. The implied Fe content has therefore risen by 52% to 2.2bn tonnes of contained metal. Importantly, the share of measured resource was increased from 3% to 35%, or 2.4bn tonnes at 34% Fe. Following the resource upgrade the stock trades at EV/Resource multiple of just US$0.19/t compared to the peer group weighted average of US$0.51/t. Despite the recent drop in the spot iron ore price, which weighs on the sector’s valuation, our ZIOC NPV-derived un-risked value remains unchanged at £3.8/share as it is based on the conservative long-term iron ore...
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