re: Ann: Iron Valley Project Results of Pre-f...
Lets not forget that IV is well advanced (in terms of reaching production) and I would think the really attractive thing for FMG is that if production can be expedited, then they will be ahead of the profit curve for the next number of years.
That is, as the price/profit of IO declines (not too much I hope), then FMG are still ahead in $$ terms. If 15Mt is mined at IV with a $20/ton profit difference, then that's still $300Mt profit extra/per year (which they get in there pocket sooner).
FMG could t/o IOH at (say) a price of $1.7B, script or cash, don't mind (700+MT DSO * $2.5), get IV going, sell/mine BS (Depending on the outcome of Anketell port/rail) slice off Maitland to a separate company (to list on the HK exchange perhaps?) and still have $200-400mill in IOH cash (from the sale of satellites).
Surly that would bring significant upside to FMG and there shareholders (not to mention us).
Far fetched? ridiculous? You thoughts?
IOH Price at posting:
$1.34 Sentiment: Buy Disclosure: Held
