The mindboggling thing at the moment is that in July it likely...

The mindboggling thing at the moment is that in July it likely generated NPAT of approximately US 630M or AUD 885M (using an exchange rate of about 0.71. The avg this month has been above 0.70)

(assumes average realisation price of USD 113 and AUD/USD 0.71)

Using the mid point of the div payout policy of 65%, it would pay out about AUD 576M.
The franking credits attached to this would be approximately AUD 242M

Therefore, the total value for shareholders would be as follows:

Pre Tax Income - AUD 818M
Profit retained by company for debt paydown/reinvestment - AUD 310M

Total value attributable for shareholders - AUD 1,128M

Current mkt cap - AUD 24.3M

Price earnings (MONTHS) - 21.54

The value for shareholders would be higher if div payout is 80% (Which is more than likely than 65%)

This would reduce the P/E (months) to 20.52

In just over a year, we will have 25% of output being the West Pilbara Fines (which is trading at an extremely low discount. The moisture content is only just over 4% as well)

Then obviously 67%+ will commence in 2.5 years as well.

With the AUD/USD now at 0.69, this not only amplifies the profit but also the amount of franking credits provided to shareholders).

Valuation models tend to ignore the amount of pre tax income shareholders receive and instead focus on your pre tax income less 30%.

In any case, for many reasons already stated, I'm extremely comfortable holding FMG now and into the long term.