this is from etrade 29.9.11We retain our Buy recommendation but...

this is from etrade 29.9.11
We retain our Buy recommendation but take a more conservative approach to risk. Our discount rate increases from 10% to 12% reflecting: the single commodity status; high operating costs; and gearing. Our fair value falls from $1.30 to $1.00 a share. Small movements in assumptions have a large impact on our fair value with this stock. Production is yet to start and assumptions are untested. We exclude attributable production growth beyond 5m tonnes a year due to uncertainty around infrastructure and capex required. Long term assumptions include: an iron ore price of US$71/tonne; and an A$/US$ exchange rate of 0.80. GBG shares are only suitable for risk tolerant investors.
i leave u guys to work that one out. im using $123/tonne; and an A$/US$ exchange rate of 1.00. just to remind you all there is about a 20% premium for our mag.