With current market capitalisation at less than $13.0 million, this under-valuation is unlikely to continue for long.

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1 Shree Minerals Ltd Suite 704, 109 Pitt Street, Sydney NSW 2000 Shree Minerals: Nelson Bay Iron Project cash flows not factored into share price By Andrew McCrea Under the radar until now, all is about to change as Shree Minerals (ASX: SHH) moves closer to production phase in the 2011/12 financial year, from its Nelson Bay Iron Project in north-west Tasmania. Shree Minerals recently defined high-grade iron ore hematite Direct Shipping Ore (DSO) resource at Nelson Bay will change the valuation dynamics of the Company. Date: January 2011 Price: A$0.12 Issued Capital: 87.4M 20c 30/06/11 : 18.4M Cash: A$2.97M Debt: NIL Market Cap: A$12.7M 1 Year Share Price Graph Worth as much as $200 million at current market rates for iron ore, mining of DSO material will generate strong near term cash flows and transform Shree Minerals from explorer to profitable producer. The hematite ore is similar to ore found in Western Australia's Pilbara region; low alumina and a premium product easy-to-extract, and should enable Shree Minerals to gain near term cash flows with little financial or execution risk. Mining of DSO material is likely to have a CAPEX cost only around $4 million and using contractor mobile mining and crushing would only take between three to four months to set-up. At current Lump and Fines prices, the DSO output from Nelson Bay is expected to generate $15-20 million in annual cash flows for Shree Minerals. Share Information Code: SHH Listing: ASX 52 week High Low Sector: A$0.22 A$0.08 Materials Author: Andrew McCrea Proactive Investors With current market capitalisation at less than $13.0 million, this under-valuation is unlikely to continue for long. Shree Minerals management includes chairman, Sanjay Loyalka who was instrumental in developing Aditya Birla Group s operations within Australia while director, Mahendra Pal was responsible for the discovery of concealed iron ore resources at Hamersley Iron s (Rio Tinto Iron) Mount Tom Price (Southern Batter) and Paraburdoo (Lens II) iron ore mines and new iron resources at Lamington (low phos hematite Brockman), Juna Downs (Marra Mamba ore), etc., in the Pilbara Region of Western Australia.

2 Background Shree Minerals acquired the Nelson Bay tenement from coking coal specialist coking Gujarat NRE Coking Coal (ASX: GNM) in 2008 and have to date raised $5.2 million (including IPO of $3.4 million in Jan 2010) for its advanced Nelson Bay River Project in north-west Tasmania, which covers 93 square kilometres. The project is located in a world class mineral province with a highly developed infrastructure supporting mining operations for over 30 years in the region including: Grange Resources (ASX: GRR) Savage River Iron Ore, Avebury Nickel, Beacon Hill Resources Arthur River magnetite project, Bass Metals (ASX: BSM) Hellyer Mine, Oz Minerals (ASX: OZL) Roseberry Mine and Venture Minerals (ASX: VMS) Mt Lindsay project. Grange Resources Savage River Magnetite Mine produces an annualised 2.3 million tonnes of pelletised magnetite. Drilling and mapping in 2010 at Nelson Bay Project indicated that hematite-goethite mineralisation which is suitable for DSO occurs over an area in excess of one kilometre in strike with grades in the range of 50-67% iron (Fe). A recently revised resource estimate by Hellman and Schofield resulted in an upgrade to a JORC Indicated and Inferred Resource at Nelson Bay to 12.7 million tonnes at 36.1% Fe (30% Fe cut-off), for a 14% increase of contained Fe. The resources includes a DSO resource of 1.2 million tonnes including 500,000 tonnes of DSO at an average grade of 57.8% Fe and 700,000 tonnes of beneficial goethite-hematite resource. The hematite deposit sits on top of a larger body of magnetite. The Inferred Magnetite Resource is 7.8 million tonnes at 38.3% Davis Tube Recovery (DTR). This is capable of producing high grade concentrates for Blast Furnace (BF) Pellets and Dense Media Magnetite (DMM). The Nelson Bay project includes: EL41/2004 (Nelson Bay River) and EL54/2008 (Rebecca Creek) and cover a total of 93 square kilometres, located in the far North-West of Tasmania. It is located in an area that has substantial infrastructure devoted to major mining activities, and is approximately 100 kilometres by mostly sealed road to Port Latta and approximately 150 kilometres to Burnie Port. The JORC Resource at Nelson River covers approximately one kilometre in strike length of hematitegoethite mineralisation including approximately 400 metres of magnetite. Study of recent ground magnetic and Tasmanian Government s airborne magnetic survey data suggests that the strike length of iron mineralisation at the Nelson Bay River Iron Project extends to in excess of 2.3 kilometres; mineralisation remains open along strike and dip, and in some parts extends to greater than 300 metres in depth. The Company is currently undertaking an Aboriginal Heritage survey, Environmental Surveys of flora and fauna, Surface water Surveys and Engineering / Feasibility studies (geology / resource estimation, mining, metallurgical, Process Plant). Feasibility studies, port access, traffic and infrastructure studies are underway with a view to commencing production in late financial year 2011/2012.

3 Near term production The DSO resource at the Nelson Bay Project, with low capital expenditure CAPEX and low operating expenditure (OPEX) has encouraged Shree Minerals to immediately proceed with mine permitting, technical studies and engineering to put the project into production in 2011/12. Shree Minerals aims to extract small quantities of DSO from an open pit to produce Lump and Fines products, with very low deleterious elements and an iron ore product of Lump and Fines from the beneficial goethite-hematite iron resource located within the very lightly explored project area. With the DSO component, Shree Minerals has potential near term cash flows with very low CAPEX and very low OPEX and hence less appointed risk. Mining will be from two open pits: - DSO pit - Main deep pit (magnetite) For the deeper and longer term magnetite project, Minserve has completed mine planning for an open pit that will extract 400,000 tonnes of ore per annum for processing through a local plant that will include circuits to grind, mill, magnetically separate, and run through a floatation circuit to produce 150,000 tonnes of high grade magnetite concentrate. The magnetite mine operation will take a phased approach, with the bulk of production in the form of DMM concentrate. From the magnetite concentrates, these will be suitable and likely to be in demand coal washeries and high-grade BF pellets. When a high quality magnetite concentrate can be mined, processed and shipped either to: - coal exporters along the eastern seaboard of Australia, it is utilised in coal washery operations to upgrade coal, where coal miners pay over A$200 per tonne or, - process into High grade Blast furnace Pellets to be used by Steel manufacturers within Australia or to China. Magnetite Pellets fetch a premium to hematite iron ore as it is higher grade & less energy consuming in blast furnace. At current spot prices for iron ore, high grade BF Pellets would fetch a CFR price of around $200 per tonne. Metallurgical test work by SGS Minerals Services has returned a high grade magnetite concentrate with a head Fe grade greater than 69.0% with low impurities: Silica (SiO2) less than 1.6%, Alumina (Al2O3) less than 0.05% and Phosphorous less than 0.01%. A Conceptual Study by Minserve Group in 2006 indicated the magnetite project would have robust returns with cash flows of A$178 million over a 16 year mine life with a CAPEX of $25 million for the cost of the

4 plant, pit and associated infrastructure to mine the magnetite based on the coal washery magnetite product. Sale of magnetite is expected to produce an annualised cash surplus of $12.3 million for at least 16 years. Total mine site costs are estimated at $ per tonne of High Grade magnetite concentrate, plus shipping costs to port of $18.80 per tonne for a total of $ FOB per tonne. A feasibility study is currently being undertaken by Minserve. The current market for Coal Washery Magnetite product is niche, but profitable and is currently only supplied by the Tallawang Mine in New South Wales and the Kara Mine in Tasmania, with additional supplies imported from overseas indicating a potential market demand for magnetite product from the Nelson Bay Project. With the Australian coal industry currently exporting 230 million tonnes of coal per year and likely to grow to 330 million tonnes per year over the next five years, this will substantially increase the demand for DMM and provide a market for Shree Minerals magnetite. The Kara Mine is operated by Tasmania Mines (ASX: TMM). By way of comparison, Tasman Mines produced 68,010 tonnes of DMM in the half year to June 2010, recording sales of $13.03 million and a gross profit of $7.77 million. Tasmania Mines sole producing asset is the Kara mine and the Company is capitalised at $19.2 million. The magnetite concentrate is also suitable for production of high grade Blast furnace pellets which has a very high demand by steel manufacturers. The demand is expected to grow substantially mainly on back of high growth in crude steel production in China & India. This product is priced at a premium to the traditional Hematite Iron ore which is produced in the Pilbara. Exploration The current JORC resource at Nelson Bay River Project is based on drilling at the northern end of the strike line, where recent magnetic survey work indicated that the main strike line of mineralisation extends for at least 2,300 metres and is open along strike and at depth. The mineralisation in some cases is deeper than 300 metres. In 2011, exploration will focus on geological mapping and compilation of old maps; upgrading resources (especially the goethitic-hematite), planning for DSO mining and related studies. Other projects held by Shree Minerals within this province include the Sulphide Creek Project, located 5 kilometres from Queenstown in Western Australia. Drilling at the Davie Prospect is indicating potential for moderate to high grade gold mineralisation at depths below 167 metres, open at depth and along strike.

5 Management & Shareholders Shree Minerals is headed by chairman, Sanjay Loyalka, who owns 28% of Shree Minerals, along with Arun Jagatramka, a director, who is the managing director of Gujarat NRE Coke Ltd., director, Mahendra Pal who was responsible for the discoveries of concealed iron resources at Hamersley Iron s (Rio Tinto Iron) Mount Tom Price and Paraburdoo iron ore mines and others in the Pilbara region of Western Australia. Gujarat NRE Coke Group (BOM: ), the largest independent producer of metallurgical coke in India and has major investments in Australian coal mines. It owns approximately 77 % of Gujarat NRE Coking Coal, which owns a 17% holding in Shree Minerals. Additionally, China All International Holding Group owns 18.0%. Catalysts for valuation growth for Shree Minerals - Scoping Study / Feasibility study results for DSO and magnetite projects: Q2 /Q3 Calender year Grant of Mining Lease & Environmental approvals: Q3/Q4 Calender year DSO mining commences: Q1 / Q2 Calender year Cash flows commence from DSO mining: Q2 / Q3 Calender year 2012 Valuation guide Based on DSO material, output from Nelson River of 400,000 tonnes per annum, (mid-point Spot Iron Ore price used to estimate the cash flow was $ CFR China for 62% Fe Fines), would produce a net cash flow of $13.5 million per annum from DSO production for Shree Minerals. This would then equate to an after tax profit of $8.4 million per annum and an Earnings per Share (EPS) of $0.079 and a price earnings (P/E) multiple of 1.7x at current share price. Based on the forgoing, we could see a Shree Minerals valuation and share price greater than $0.30 within six to 12 months based on this undervaluation. (Liquidity in the stock is light and daily share turnover low).

6 Shree Minerals carries an extremely light market valuation for a near term DSO iron producer with established strong regional infrastructure. The DSO project will build cash-flows and profits as a platform for the next stage magnetite project. The magnetite project, which is a larger project, would provide an upside valuation catalyst for Shree Minerals after the DSO hematite project. ProactiveInvestors.com.au is the largest resources for "Small-Mid Cap" investors in Australia. Together with European, North American and Chinese websites, Proactive Investors is the largest global financial & media network across 4 continents in 4 countries. With a team of analysts, journalists, & professional investors, Proactive Investors produces independent coverage on "Small-Cap" companies for private investors, private client brokers, fund managers and international investors. ProactiveInvestors.com.au hosts One2One Investor Events in Sydney, Melbourne, Brisbane, Adelaide and the Gold Coast. No investment advice Contact us Proactive Investors is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon. Warning The information contained within and provided through is general information only. It does not take into account your investment objectives, financial situation or needs. It does not constitute general or personal advice and is provided to educate investors as a guide. Investors should consult their financial adviser for any financial advice before taking any course of action. You should therefore consider whether companies in this article are appropriate to your investment objectives, financial situation and needs before acting upon it, seeking advice from a financial adviser or stockbroker if necessary. Atlantic Pacific Securities Pty Ltd, is a Corporate Authorised Representative of Romad Financial Services Pty Ltd, an Australian Financial Services Licensee (AFSL No ). Disclaimer The information in this article has been prepared from a wide variety of sources, which Atlantic Pacific Securities Pty Ltd and Proactive Investors, to the best of its knowledge and belief, considers accurate. You should make your own inquiries before taking any course of investment action and we strongly suggest you seek independent investment advice. Disclosure Employees and/or associates of Atlantic Pacific Securities Pty Ltd may or may not have holdings in one or more of the companies written about in this article. These holdings should not be seen as a recommendation. Employees and/or associates of Atlantic Pacific Securities Pty Ltd and/or Proactive Investors may receive fees and or commissions for one or more of these companies.