Very interesting that this firm would base it's recommendation on an estimated DCF at this point?

IMHO there are way to many factors that are unknown at this point to do a realistic DCF.

In brief DCF (Discounted cash flow) is an estimated rate of return that a project would provide ( after it is in production).

It is a similar calculation to net present value. This estimates what the present value of a string of payments/returns assuming a given rate of return.

However one has to wonder what assumptions where used to arrive at their conclusion.

Some costs that would need to be considered include, roads, rail, power, equipment, concentrator, administration, environment, royalties etc

Also we are not even close to evaluating the tonnages or grades at E1 to say nothing of the other deposits on NOT land.

IMHO the best news we have had lately is that Cliffs is taking serious steps to build the infrastructure. Without roads, rail and power E1 is worthless.

Their is very significant tonage of chromite in RoF and yet it is the nickel that makes the sp move. This just shows how little understanding there is among institutions and investors of the value of chromite (in NA)

However Cliffs has a good understanding of what it is worth and is slowly aquiring a foothold in the RoF while others are focused on nickel.

With the recent announcements by KWG/Cliffs of acquisition of NSR on FWR and the progress being made on rail by Cliffs, it is starting to look like it will be Cliffs that will have the biggest impact on the sp of all the RoF players.

But then again it is rumoured that Vale has $25B for acquisitions and a smelter in Sudbury. Will they ignore E1? I doubt it.

SN