You're looking at the size of the resource. This thing will be mined over 25-30 years. You can't put a $5 on the company. That values the company at over $10 billion dollars. After all the costs to produce the iron ore, you need a return of 25% on future expected total expenditure for a project that isn't going to get off the ground until 2013-14.
So lets assume that they produce 40m tonnes that would bring earnings of approx $70-80m per year at a constant longterm iron ore price of $50/t. $80*30 years is $2.4b dollars. As a company owner would you be happy to use $2-5billion of your funds now to make $2.4b over 35 years. It's really that simple. This stock is fully valued. You can play on sentiment but I got a lot of my stocks out yesterday.
SDL Price at posting:
0.0¢ Sentiment: Sell Disclosure: Held