grossly uindervalued compared to peers

mkt cap comparisons speak for themselves

AGO is quite a similar operation - HAEMATITE and huge magnetite.

AGO will be in proddy in 2008

So will WPG!

Now compare the mkt caps!

WPG has ALOT of catching up to do!

At the higher prices , the EPS is monstrous given the small amt of shares and low mkt cap.

lets say 50 cents per share is EPS with a little extra shares issued for capital for example.

give a PE of 10, you get $5.00 !

Give a PE of 7, we still get a price tag of $3.50!

Even if iron ore price settles LONG-TERM at 70USD which is 80 AUD per tonne, WPG will still make a good margin.

theyll make 70USD*1.15(exchange rate) = 80mill roughly per tonne

costs are 55 AUD, so 80mill-55mill = 25mill/p tonne revenue

lets say they produce 2.5mill tonnes : 25mill * 2.5mill = 62.5

after tax: 62.5 * 0.70 = 44mill

EPS: 44/ lets say 120mill shares

37 cents per share

thats using a price of 70USD long term

Use a PE of 10 coz they have big growth potential given the large magnetite resopource!

We get $3.70

Use a PE of 7 : $2.60 price tag

and this is using a long term price of $70USD!

If we use $110 USD per tonne price:

$110USD * 1.15 = 126.5 AUD

net price per tonne : 126.5 - 55 AUD = 71.5 AUD profit per tonne

2.5 mill tonnes : 71.5 * 2.5mill = 180 mill in revenue

tax : 180 * 0.7 = 126 mill

126/120 shares = roughly $1 EPS!!!

Please someone check my figures. Have I used the wrong prices or miscalculated something in the pricing???