Lethal,

Your math excercise is a good way to provide an estimate for the value of Magpie and hence that of FNC, throwing away everything else, McFaulds, 17%CHM, 9M share of RGX, etc, etc. The deposit at Magpie is huge in the billion tonne range. 46% of that (FNC share) is still huge compared to RGX Labache. Even if we throw away the inferred and consider only the indicated 68% of the total) Magpie deposit is still huge.

Assuming that the business model is to sell the Ferro-Titanium first to lower the initial capex and get some cash flow for producing TiO2 later, i.e. taking the lowest number in your table $56/share (1% in-situ value). 76% of that = $42/s which is a decent SP. I would laugh (or cry...does not matter which one) all the way to the bank as well.

Another way to look at the situation is to compare with RGX even though the deposit at Labache is much smaller than Magpie (huge as discussed above). But let's assume that the money making scheme is limited by the capex which would take into account the size of the mill and processing facility, etc..... and the production for both FNC and RGX would be considered roughly the same. This is really macro macro economics, but it's would give an investor some kind of comparison between the 2 companies. So, with approximate the same number of shares OS, why is FNC SP is much lower than that for RGX (by a factor approximately 4)?

Similar comparison could be done with CHM considering ONLY the following: 17.5% of CHM (0.175 x $103M = $18M which is almost equal to FNC Market Cap) + 1.5% NSR + Magpie (of the same order as CHM deposits) + 100% Lac Lamelee which is sitting in the middle of all the actions (surrounded by some big names, CLF, Arcelormittal,...and not too far from CHM deposits). This would yield similar result: FNC undervalued by at least a factor of 4.

Perhaps, Dr. Smith would just single out a couple of big items, such as Magpie and ask some go getter PR firm to do a flashy multi-media "commercial" on it with the main objective to fly it above the radar. If not, then what's the fear, or the real reason behind the inaction?

goldhunter