age article. scoping study due this week, page-7

Back when MMX was .25 I read an article in resource stocks saying that for 1m tonne of fe ore they expected earnings of $20m based on what mount gibson earned off there 1m tpa.
After reading this I bought MMX as there m.cap at the time was less than 30m.

At the time there formula was that resource stocks were capitalised at approx. 12 times earnings which would give a m.cap of 240m per 1m/t sold.
Using that old formula from approx 3 years ago on 3m/t pa BCI would be valued at $720 million however fe ore prices have trippled since then and BCI will not have the same trucking cost as they plan to transport mainly via rail.

These are just my thoughts on a company with a market cap of approx. $90m. BCI is almost exactly comparable in price to MMX when MMX were .30c as BCI will have 1st year production of 3m/t pa not 1m/t like MMX did.
I welcome feed back on this.
cheers sundance kid