Ann: June Quarter Activities Report and Appendix 5B, page-24

The iron ore price is collapsing - which is GWR's key risk. It's no good saying GWR is undervalued on a P/E basis if in a year's time there's no E left because of decreased IO prices. This means that the market won't give GWR much credit for high IO prices continuing if there's signs of volatility or collapse.

Combine that with a bit of a disappointing quarterly which highlights the key risk of needing high IO prices to keep making good profits.

GWR is still a good play if you think IO will stay high. It's basically a bet on IO prices over the next few years. Some analysts think it will stay high some think it will trend down.