Bullish article worth fowarding on TRKP
TurkPower Corp. ($TRKP.OB) continues to build its management team to become a major player in iron ore mining in Turkey.
The company has appointed Richard Schaeffer to its Board of Directors. He is an industry and investment services heavyweight. (This follows last week's addition of James Davidson to its board.)
Mr. Schaeffer is the retired chairman of NYMEX Holdings Inc. and the New York Mercantile Exchange, which went public at a valuation of $13 billion under his lead in 2006. He served as a member of the NYMEX Board of Directors from March 1990 to 2008; was the treasurer of the Exchange from 1993 to 2004, vice chairman from 2004 to 2006, and chairman from 2006 to 2008. Mr. Schaeffer has been a NYMEX member and seat owner since 1981.
The Foundation is in Place to Build Upon
For once, a quote from a new director REALLY says it all:
"It's a pleasure and honor to join TurkPower and its team of professionals," Mr. Schaeffer said. "I strongly believe TurkPower to be perfectly positioned to become a major mining and energy company in Turkey, the second-fastest-growing economy and energy market in the world. I look forward to helping the company execute its business plan and to working closely with TurkPower's management and board of directors in the coming years."
NBT expects this is one of the final "bricks" in the foundation of TurkPower's announcement of its acquisition of a controlling interest in the 20 million metric tons iron mine property they announced in February 2011 with a value of $2 billion based on current market price of approximately $175 per metric ton of 58%-62% grade iron ore.
The iron ore mine is an open pit summer mine, which can be operated from April to October and can produce up to 500,000 metric tons of iron ore per season. At $125 a metric ton NET margin, NBT assumes this to be a truly transformative transaction for the company. There is of course no assurance this transaction will close as described by management in their Jan 31, release...but where there is smoke there is fire.
$TRKP.OB is building up its team in our opinion to complete this and other key mining properties in fast growing Turkey.
At normal multiples of producing iron ore mines a transaction of this size would indicate a per share valuation of $2.50-$3 a share (with a controlling interest in the mine property).
We rate $TRKP.OB a Speculative Buy ... and give it a $2 target for 2011 (based on completion of controlling interest transaction).
For the complete release, click here.
Stay tuned...
Tobin Smith
Founder and Chairman
NBT Equities Research
