investor presentation africa down under, page-52

Gazza, it is percieved as such low value, due to the risk of the iron ore never getting out of the ground.

If there was 100% certainty that the ore would be mined, then the value would go up. With that said, it doesn't matter how much Iron ore you have, it is absolutely useless, if you can't get it out of the ground.

So it is currently discounted due to the risks involved. In order to get it out of the ground, they require a bucketload of money.