Ann: IPO Prospectus for Western Gold Resources Lodged, page-67

At 22.5c todays low seller sold at 68m valuation (303m fp) for a stage 1 operation of
1mt x $A110m margin todays prices, x 70% = $A77m cash builder

Of course that floats, and will average over the year, along with contributions from FEL, and Stage 2 expansions start to get a look at forward.

Selling for under the stage 1 cash builder. They are giving away a bet, that iron ore prices even if softened, continue in operations for several years, with expansions potentially able to add tonnage, where margins may soften to compensate.

Total fear of the unknown, than betting on the track that is in place.
China needs iron ore. And the rest of the world cant fill that space in the immediate horizon.

The sheep trade, only look at the other sheep that sold before them.