market up and fwl down, page-22

Bigus

I must say I over estimated AXO.

Since my last posting, I have spoken to AXO by phone (at 5:30pm Perth time) and have deduced the State One report on the AXO website is incorrect, it has the revenue all wrong.

AXO told me they receive the standard iron-ore price for their produce, for the actual iron-ore content, which will be 58% iron content.

So at the current iron-ore fines price of $US80.52 a tonne, AXO will receive US$46.70 a tonne.

It is a still a good buy, where one may earn 100% a year profit at the current price come 2010 but not as outstanding as I though it was.