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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Last
25.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $289.3M | |||
| Open | High | Low | Value | Volume |
| 25.0¢ | 25.5¢ | 24.5¢ | $420.9K | 1.680M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 245437 | 25.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 25.5¢ | 70114 | 5 |
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| Last trade - 16.10pm 06/09/2024 (20 minute delay) ? |
| GRR (ASX) Chart |