Hi Zachery and thanks heaps for the calculation.I am missing...

Hi Zachery and thanks heaps for the calculation.

I am missing some basic understanding here on how to calculate a realistic SP from a companies yearly profit.

just as you said let's assume: 3 billion revenue, 1 billions costs, 2 billion profit / per year.
let's also assume: 1 billion shares
2 billion USD divided by 1 billion shares --> SP = 2 USD
ok, easy.

What else influences the SP?
potential increased revenue the following year
fat coal prices / demand in China
operating costs
trading stability
what else?

is it that simple? yearly profit divided by shares held? if that yearly profit is expected to continue for an ongoing 15 years, wouldn't the SP rocket from "only" 2 USD?

also, why do you assume they'll raise the circulating shares to 1 billion from the current 508.000.000? can they just do that? what does it mean for current shares holders?
how do the performance rights play into this (can't find the info how many there are right now)?