Alright folks, this is probably one of the most undervalued...

Alright folks, this is probably one of the most undervalued stocks on the ASX. I've just run a quick valuation with very conservative estimates and for FEX to be trading at 34c is incredible and I will be buying a lot more on Monday after doing this analysis.

Key assumptions, iron ore prices continue to decline every quarter by about 7 to 10% for the next year and then to drop another 24% after that to get to an average of US$100 for the remaining life of the project. No exploration upside factored which would just be opportunities further share price catalysts, this is purely iron ridge steady state cash flow. We've also discounted significantly the future cash flows as shown in the yellow highlighted area to see what contributes to the market cap and ultimately share price.



Currently the market is not even valuing the next 12 months of hedged steady state production/sales, if it were to, then a minimum of 40cents share price on very high probability cash generation. Let alone the 5 years afterwards which is easily worth another 40c on top.

Cannot wait for Monday, liquidating a few other positions to load up the truck here. This one is a real winner.