iron ore contract info!, page-4

Some hypertheticalls wink wink!

If ADY have a million tonne deposit and they sell ore at $30 tonne FOB, and it costs $15 tonne to extract and ship, and they do 1 million tonnes a year which is a medium size deposit then they earn $15 million pre tax (EBIT). At a share price multiple of 10 for P/EBIT then we will have a p/e (on EBIT) of $150 million, which means a share price of about 33 cents if the market is prepared to pay a multiple of 10 on this project alone. Have a look at Fortescue Holdings

Of course then there is Rincon Salar lol!