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FNT - Frontier Resources (1 Viewer)

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Can someone have a reseach about FNT, what is its market capital, on my comp, it says 0.0m??? 3 fold today? Chance of further increase? Fanx in advance. :eek:
 
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Market cap fully diluted is $55M @ 50C
has a very large copper\gold deposit similar to AUM but lower grade, I think if AUM go up then FNT should follow, :2twocents
 
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blobbob said:
Market cap fully diluted is $55M @ 50C
has a very large copper\gold deposit similar to AUM but lower grade, I think if AUM go up then FNT should follow, :2twocents


Oh dear,

I day traded this stock today, but am posting for newbies so they don't get burnt!

FNT or TasGold as it was formerley known as has an Inferred Resource of 85Mt @ 0.4% Cu + 0.6g/t

The ann they released is based on a 120Mt Deposit IE IT ASSUMES A 40% INCREASE IN THE RESOURCE BASE!

Now looking at the conseravtive long term forecast 12 Mt p.a. scenario it predicts a NPV of $60m us or $90m AUD

But wait it requires over $300m AUD Capital to get the project going,
Sure the figures stack up on the current prices assumption but I think they are a bit too high for LT

Also it must be understood their deposit is 85Mt Inferred not a Measured 120Mt as this report assumes!

Very dodgey to release such an ann, can't believe ASX let them do it,

You've been warned!
 
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I should add, I'm not saying this stock is expensive or cheap or anything like that, you can draw your own conclusions,

I'm just trying to make people be a little critical of these ann, sure they create great trading opportunities but just be careful,

And also think about the Cap-Ex requirements, the confidence of the resource, the grades and the Assumed Commodity prices etc etc
 
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Thanks young trader - those are all valid points. I am interested in learning about how resource companies can be valued so that good (and informed) buying opportunities can be identified.
 
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YOUNG_TRADER said:
Oh dear,

I day traded this stock today, but am posting for newbies so they don't get burnt!

FNT or TasGold as it was formerley known as has an Inferred Resource of 85Mt @ 0.4% Cu + 0.6g/t

The ann they released is based on a 120Mt Deposit IE IT ASSUMES A 40% INCREASE IN THE RESOURCE BASE!

Now looking at the conseravtive long term forecast 12 Mt p.a. scenario it predicts a NPV of $60m us or $90m AUD

But wait it requires over $300m AUD Capital to get the project going,
Sure the figures stack up on the current prices assumption but I think they are a bit too high for LT

Also it must be understood their deposit is 85Mt Inferred not a Measured 120Mt as this report assumes!

Very dodgey to release such an ann, can't believe ASX let them do it,

You've been warned!

YT, ur theory might be right, however because of the enormous jump, and also a trading halt during an upward trend, i still believe there is a large momentum to push the price further on monday.

Also it was stated that "a production rate of 39,000t of copper and 12,000 oz gold/year for 10 years, with a cumulative cash flow to shareholders of US 1.3 Billion (compare to the market captial of "55m at price 50c"). this shows the company is capable for a long term stable and positive future.

Care is certainly needed but i fink there are still space for rise, any other opinion? :2twocents :2twocents :2twocents
 
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Again 3 points


1. The Production level assumes a measured resource of 120Mt (ie 12Mt p.a. for 10yrs) vs current INFERRED RESOURCE of 85Mt

2. It assumes current High Spot Prices for 10Years ie Life of Mine

3. $300m + is not an easy number to raise, debt/equity whatever think of the dillution, also Refer to points 1 and 2 :D


But if you still think it is a good trade (which I did) or investment then go for it, at the end of the day this is only my opinion and I'm no analyst

Good luck
 
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YOUNG_TRADER said:
Oh dear,

I day traded this stock today, but am posting for newbies so they don't get burnt!

FNT or TasGold as it was formerley known as has an Inferred Resource of 85Mt @ 0.4% Cu + 0.6g/t

The ann they released is based on a 120Mt Deposit IE IT ASSUMES[/B] A 40% INCREASE IN THE RESOURCE BASE!

Now looking at the conseravtive long term forecast 12 Mt p.a. scenario it predicts a NPV of $60m us or $90m AUD

But wait it requires over $300m AUD Capital to get the project going,
Sure the figures stack up on the current prices assumption but I think they are a bit too high for LT

Also it must be understood their deposit is 85Mt Inferred not a Measured 120Mt as this report assumes!

Very dodgey to release such an ann, can't believe ASX let them do it,

You've been warned!


"Can't believe ASX let them do it", really? The company has just announced a trading halt to enable ASX to review the announcement made ealier. It would really ironic if ur statement was correct. Would it? Other opinion?
 
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FNT went up by 300% today :eek: after the announcement of discovery at Papua New Guinea. The reason i believed it went up so much today is because the discovery will last 1.3 Billion for next 10! years which is a long and sustaining period. This can create a base for FNT in term of profit, which allow FNT to built on its profit from other mining activities. The other reason is the relative discovery in contrast to its market captial (55m).

Interestingly FNT went into a trade halt to allow ASX reviewing its ann(the ann seems to be realli good then). Plus the volumn was not realli high today relative to the price rise, this seems to show that people are still not willing to sell their shares at the current price and hence still a lot of ground to gain on monday in my perspective.

It will a interesting day on monday when the trade starts again! This is onli an opinion, take some reseach first! :2twocents :2twocents :2twocents
 
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The media hasn't started beating them so there must be more upside! :eek:

Frontier Resources Limited (FNT) surged 300% in early trading, jumping
36c to $0.48 after announcing the acquisition of a 100% stake in the
Kodu Deposit in Papua New Guinea. The small cap gold miner said that
the JORC compliant inferred resource at Kodu contains approximately
340,000 tonnes of copper and 51 tonnes of gold with a significant but
unquantified amount of Molybdenum.

Frontier Resources reported that a preliminary desktop economic study
by an independent consultant of a hypothetical reserve of 120 million
tonnes, similar to the Kodu Deposit, suggests the Kodu Project could
be financially attractive if the present inferred resource can be
converted/ upgraded to the hypothetical reserve.

The desktop study showed that at the project has the potential to
achieve an internal rate of return (IRR) of 55%, with a cumulative
cash flow to shareholders of US$1,300,000,000 and an estimated net
present value (NPV) of US$515,700,000.

The junior minerals explorer advised that there is scope to
significantly increase the inferred resource at Kodu after only 16
drill holes have been completed to date for approximately 5,530m, with
11 holes being terminated in mineralisation.

The company said advantages of any potential mining operation at the
Kodu Deposit include the near surface nature of the copper/gold
deposit as well as the possibility of a starter pit in the southern
higher-grade near surface gold zone for more rapid capital payback.

Frontier also noted that the potential operation was in a logistically
simple and `cheaper' location for development, being only 55km NE of
Port Moresby.

The group explained that its strategy forward is to concentrate
exploration on the most advanced projects in PNG and progress them
rapidly and cost effectively into the development phase.

To achieve this, Frontier intends to confirm and extend the limits of
the known Kodu Deposit inferred resource, with approximately 10,000m
of drilling, planned to commence in the last quarter of 2006.

The company reported that it would initiate a pre-feasibility study at
Kodu to assess requirements and possible paths forward, followed by a
3D-Induced polarisation survey at the large Elo porphyry copper/gold/
molybdenum prospect, then drill testing it and other porphyry
prospects near Kodu.

The group said that it would concurrently fast track evaluation of the
Komsen gold Prospect at Andewa in New Britain, with the view to
defining on and near surface, moderate grade, vat leachable gold
resources for possible `near term' development.

The company also announced that it has acquired a 100% interest in a
7,500 square kilometre portfolio of gold properties, positioning
itself to become a major explorer in mineral rich PNG.

At the end of the days trading, shares in Frontier Resources were up
36c to $0.48.
 
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Copper craze: this time Frontier's up
Email Print Normal font Large font Jamie Freed
July 14, 2006

More facts sought on copper prospect

IN YET another sign of a return to the mentality of the 1960s Poseidon boom, Frontier Resources shares quadrupled yesterday when the company announced it had a "hypothetical reserve" of copper worth billions in Papua New Guinea.

In actuality, the announcement to the Australian Stock Exchange which sparked the buying frenzy was little more than a rehash of two previous releases.

The only real change since the earlier releases was the new-found popularity of copper explorers amid the massive interest in Australian Mining Investments, which has been in a trading halt for the past week.

Shares in Frontier rocketed from 12c to a high of 54c in just two hours before the company was forced to call a trading halt so the ASX could examine its announcement more closely.

Frontier, previously called TasGold, has held its Kobu copper project in PNG for years, in partnership with South Pacific Minerals. In March, South Pacific announced it was selling the remainder of its stake because the results "were not sufficiently encouraging to warrant further expenditure".

At the time, Frontier claimed South Pacific had never conducted an on-site examination nor had comprehensive exploration information at its disposal.

Then, in early June, Frontier announced a study using "hypothetical reserves" of at least 120 million tonnes grading 0.36 per cent copper and 0.46 grams per tonne of gold would give its project a massive cash flow.

Frontier company secretary Garry Edwards admitted the only new information in yesterday's announcement was that Frontier had finished buying out South Pacific's interest. "In that sense, it's not completely new," he said.

Because Mr Edwards is not a geologist, he declined to talk about the "hypothetical reserves" question which had concerned the ASX. He was surprised by yesterday's trading frenzy. "It could be something to do with the excitement about copper that's been generated at the moment," he said, referring to the interest in AMI.

Frontier shares last traded 36c higher at 48c.
 
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Capital is only 8.5 million only at price of 48c, i believe the discovery can add lot to its capital and hence share price :2twocents :2twocents :2twocents
 
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IMO they are overvalued @ 48c and need cash [ maybe SPP or placement next week] but they will go up because everyones looking for next AUM and there are not many small copper explorers to choose from, :2twocents :2twocents
 
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blobbob said:
IMO they are overvalued @ 48c and need cash [ maybe SPP or placement next week] but they will go up because everyones looking for next AUM and there are not many small copper explorers to choose from, :2twocents :2twocents

I agree with ur statement, aside the volume is very low on that day shows not many people realised the share on that day, however after a trading halt of few days, more investor will realise the share from media. I believe this copper company has a lot of potential left and a 300% increase might be very extraodinary though account for AUM (up 30 times) - price shall be up and the momentum can push the price really rapidly, anything can happen on monday!!! :2twocents :2twocents :2twocents
 
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FNT has acquired 340,000 tonne copper + 51 tonne gold

Copper
340,000 tonne = 154,195,011.3 lb :eek:

154,195,011.3 x $3.6 = $555,102,040.7 (US$555 million)

Gold

51 tonne = 1,444,759,207 oz

1,444,759,207 x $660 = $366,367,346,800 (US$366 billion) :eek:

This provides revenue up to US$367 billion. (AUS$490 billion at 0.75/1)

Market capital for FNT = AUS$8.5 at price of $0.48

Hence the revenue is (490000/8.5=58) 58 fold relative to the capital. :2twocents

If price follows capital then price shall be $27.85.

I hope i am not dreaming, can someone explain all this to me, if i am dreaming wake me up!!! :eek:
 

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