$1 will be an absolute bargain.I can't be bothered going back...

$1 will be an absolute bargain.

I can't be bothered going back through my posts, but I did some analysis on how much AKO will make compared to Champion Iron whose mine is in Canada, just based on the salaries alone. From memory, I beleive it was about $60m+ per year - which is almost 5x our current market cap just in profits from lower salaries.

Looking at revenues, shares on issue etc etc, I also did some analysis on what the earnings per share could be once the loan for DSO mining is paid back.

And whilst FMG are a much larger company with much lower costs, I believe AKO has the potential to have a much higher ESP and DPS given we didn't need to do massive dilutionary raises to build infrastructure to get to the scale that FMG needed.

Some VERY rudimentary math...

2mtpa X ($130/t sale price - $50/t cost = $80/t) = $160m USD or $248m AUD in net income.

I do not believe there are any preferred dividends that need to be paid out, so let's use that number.

If we use my estimate for about 160m shares on issue - and add 15% for 175m shares on issues, we will have an EPS of $1.14 per share.

FMG currently have an EPS of about $2.43.

If our resource across Bekisopa and Satrokala expands to 500mt (but should be at least 1,000mt or potentially as high as 2,000mt), and we self fund the expansion our production from 2mtpa to 10mtpa for a 50 year mine life, then our EPS should be well above $2.43.

I'll let you speculate on what the numbers could be if we have a 1,000mt / 1 billion tonne resource - or more - and we decide to scale up to a 20mtpa operation - which would still mean a 50 year mine life.

This is my 10 - 15 year timeline, but if FMG can pay a nearly 10% dividend (and they have paid as high as a 20% dividend), then AKO should be able to match that.

Add to that that Tratramarina is on the river, and the haulage costs which are $28/t for Bekisopa and Satrokala will be closer to $2/t, then there will be a ton of extra money to be made. Of course there has been very little work done there, but that resource could be unlocked in pretty short order (3 - 5 years) once the company has money in the bank.

These projects will be complete cash cows when they all come online and are in production.