Two posts make bring room for rumination.

Fani’s post:

Continued Disconnect - chm - fnc

posted on Feb 28, 1110:38AMUse the IP Check tool[?]

don't you just love the fact that Chm at 2.75 the market cap is 221M for 82.5% fermont - so fermont is worth 221/.825 = 268M

Fnc has 17.5% plus NSR - so round up to 20% x 268 = 53M versus the 36M mkt cap it trades at.

No value for Magpie - 9M Argex shares worth - 7M - 1M chm shares (after payout to sheridan for Lamalee ) or 2.75M - no value for Lamalee or anything else.

Tell me why Peter can't get the message out and release news on fermont and put numbers to the 777M tonnes of ore...

http://agoracom.com/ir/Fancamp/forums/discussion/topics/471164-continued-disconnect-chm-fnc/messages/1521030#message

Rago’s Post

RBC’s Kozar mentions CHM to be $3.50 to $4.00

Mr. Kozar commenced new coverage with an "outperform-speculative risk" rating and a $3.50 price target…He said: "It has already had substantial exploration success. Based on the prospects for adding more iron ore reserves, combined with what they have already discovered, I think it is trading very, very cheaply compared to other iron-ore related companies." Mr. Baird figured the stock could be worth $4 by year end.

http://agoracom.com/ir/Fancamp/forums/discussion/topics/471392-as-chm-goes-so-goes-fnc/messages/1521649#message

In light of CHM’s NPV of 1.637billion dollars based on Firelake North as a stand-alone operation, doesn’t the $3.50 to $4 seem conservative?

http://www.championminerals.com/?id=14&press=186

Does anyone know the metric for determining CHM’s NPV today in light of their recent 1.5 billion ton 43-101 disclosure? More than twice the former NPV, one would think, especially since the original PEA study included millions in infrastructure, which won’t need to be duplicated…and they are just beginning…boggles the mind!

Also, mind boggling, is the fact that FNC owns 100% of Lac Lamalee, a deposit which could very well eclipse Firelake North in magnitude. Smith has boots on the ground now doing his mag and gravity work in preparation for drilling after spring thaw. Will this lead to a 1.6 billion NPV on the same basis as Firelake North? Plus 17.5% of whatever huge number CHM turns out to be? Plus Magpie and its announced IPO?

http://www.championminerals.com/?id=14&press=202

We should also keep in mind that Harvey-Tuttle Property still has half way to go.From 2/28/11 nr “The full extent of most zones is still unknown and nearly 50% of the total magnetic responses are yet to be tested…”This also excludes the additional historical estimates of 613 million tons.

From 2/28/11 nr, “ Seven other Projects within the Fermont Property Holdings contain additional combined Historical Mineral Resource Estimates* totaling 613 MT grading 31% Total Iron.” In addition this is only 3 of the 17 properties explored and Moire lake is currently be drilled.

http://www.championminerals.com/?id=14&press=200.

Can someone help me with this math? Is it possible to use the 11/3/10 CHM Preliminary Economic Assessment study NR as a matrix with their recent 1.5 billion tons to arrive at a new current NPV?

Here is my attempt. Perhaps you can have fun breaking this down more accurately.

NPV $1.637 bilCurrent NPV - ?

388 mil tons iron1.5 bil tons

29% quality25.4% quality

388,000,000 x .29 = 112,520,000

$1,637,000,000 / 112,520,000 = $14.548

1,500,000,000 x .254 = 381,000,000

381,000,000 x $14.548 = $5,542,788,000

Current Estimated CHM NPV = $5,542,788,000

Now relate to FNC interest in CHM

$5,542,788,000 x .175% = $969,987,900

$969,987,900 / 60,000,000FNC shares = $16.166/share

$16.166 per FNC Share

This doesn’t include our 1.5 NSR of Champion.

Makes you scratch you head. ? FNC at .63c ?

Now imagine if we also add our 100% owned 500 million to 1 billion tons in Lac Lamalee this summer.

A few days ago, Smith said that chasing an NPV evaluation to base your SP isn’t realistic. However, clearly, as Rago’s post showed, we are undervalued. Action needs to be taken to increase the SP. We need that third party evaluation that legitimizes FNC for the world.

Smith also said he knows we are waiting for meat for the Magpie IPO.

Fasten your seatbelts.

-StockGreed