Hoov,

I have two concerns with your valuation (unfortunately I am using the same one so I obviously don’t know the solution). The first if my numbers are correct (See Below) you used the 20% cut off to calculate the value per tonne of chromium as valued by the Cliff Takeover of FWR. My problem is assessing what a realistic cut off grade is for Chromium, if this was a Nickel, Zinc or Copper mine it would be fairly simple to come up with a reasonable figure. The 15% Cut-off used the Big Daddy number included a band of waste that from my understanding could be removed before sending ore to be processed. I included a rough calculation of Cliff’s value of Chromium at a 25% cut-off at Black Thor.

The second is the assumption that Cliff’s was aware of the size of Big Daddy before making an offer for FWR, again I understand why you made the assumption I just don’t know if it is accurate.

Note: There could be mistakes in these calculations, they were completed in 15 minutes because I could not find my old spreadsheet.

Disclosure: I have a position in SPQ, I made a set of assumptions that may or may not be correct