Replies to post #3339 on Labrador Iron Mines Holdings Ltd (LBRMF)

[PureZoob]

Boom... Mic drop sir

[bobbleheadtwin]

The problem is some people were quoting the Marketbeat 5 ratings of $31 and that appears to have been wrong and people need to understand that and due their own DD.

[Lonewolf6]

Yes, I have never used Marketbeats for pricing as I have known all along that the company they are assessing was the Royalty corp.
That is why one should always do their own due diligence.

I have owned this stock for 5 plus years....in the dark times where she traded for less than a penny.
The current rise in my opinion is due to the nature of the iron ore market now, the fact that the reserves are of excellent quality iron ore, especially Houston, and the fact that they are in the process of final evaluation to start operating again.

I see down the road a stock price of $10 to $15 based upon my won analysis which is:

Let us use $162. a tonne for revenue and assume the costs of extraction and operating and administrative costs provide a margin of 60 percent. That would mean profit of $97 a tonne.
At 2 million tonnes per year of ore sales the profit would be $194 million.
Using 162 million shares would provide an EPS of $1.20.
At a multiple range of 8 to 12 times would indicate to me a price per share of $9.60 to $14.40 which I feel is realistic.
But we must be operational and have contracts and selling.

My cost in a very large position is less than $.07 so I could have sold at any point in the past 6 trading days at a very handsome profit.

But I choose to wait it out because based upon my own analysis this company once operational will be very profitable.

So for me I wait for the long term with a large position.