why low price, page-25

I know this stock so well..it fact way back to 2003 startup when they had a surprise one for one stock split at 10 cents...... (I was holding at 17 cents and of course the stock gapped down)

Agree the sell off is this stock is caused by macro issues......but to look inside the company fundamentals, would impress most research driven investors. Big picture issues are way overblow (US coal companies only this week, negotiated an all time record high coal price with China)

Absolutely delighted to be able to get back in, at a time when the company has never been better placed.

1.08 billion shares and $400m cash...so enterprise value of just $1.5b....eg thats half the size of say Atlas AGO....one thirthith of FMG (MGX ramping up to 10mtpa...FMG 45mtpa).



$1.5b EV.....yet the company made $140m nett profit for 6 months end Dec 2010 (....production to nearly double end of this year, to 10mtpa from Extension Hill and finally completion of the Koolan Island main pit).

NPAT of $450m PA really is really is achievable for the company...puts them on very low forward earnings multiples

Main pit at Koolan Island will provide very high grade FE and extremely low strip ratios (they have done the hard work - look for production upgrades)

Company will commence exploration on the previously untouched western part of the Island, next month. There are vast outcrops of iron ore....

The stock is actually off almost 30% (from 2.30 in a month)....may represent a great opporunity at these beaton down levels.