Grange has the option to sell iron ore or leave it in the ground. So GRR can be valued with an option price model. Iron ore has a volatility of about 30%. Over the next 10 years Grange will produce 25 million tonnes at a cost of perhaps $160/tonne. So the strike price of the iron ore is $4 billion. The market price of the ore is also about $4 billion at current prices. Using an online calculator for american options with 10% interest rate and 10% dividend yield, the option to sell the iron ore is worth about $0.96 billion.
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Ann: Appendix 4D - Half Year Ending 30 June 2022, page-203
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35.0¢ |
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Mkt cap ! $405.0M |
Open | High | Low | Value | Volume |
0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 3616 | 55.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
32.0¢ | 5798 | 1 |
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No. | Vol. | Price($) |
---|---|---|
1 | 3616 | 0.550 |
5 | 92002 | 0.355 |
12 | 737823 | 0.350 |
2 | 21145 | 0.345 |
10 | 150042 | 0.340 |
Price($) | Vol. | No. |
---|---|---|
0.320 | 5798 | 1 |
0.350 | 90000 | 2 |
0.355 | 62431 | 2 |
0.360 | 96364 | 5 |
0.365 | 73185 | 2 |
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