below 40c, page-6

It's really hard to judge practisingaccountant... because of mitigating factors... if IO falls by 50%, AUD will fall, Oil will fall, labour costs will fall, manager salaries will still keep motoring on (hope not, but remuneration committees tend to be severed from reality(likewise the RBA - should've started the interest rate cuts a couple meetings ago)), price of equipment falls... etc.

I'll take as a worst case scenario as being if the IO price in AUD falls by 50%, then costs in AUD will fall by 25%. In the half year GRR was selling IO at average $211/t
Average total costs were $122/t

On the presumption that IO will to sell at $106/t and costs at $92/t and production at 2mtpa. Then Net profit before tax will be $28 Million pa or based on 1.15b shares
2.43 cents per share per annum. On top of net assets of 54.1 cents per share or cash of 14.8 cents per share.

So in a bad case scenario where assets except cash are null, we continue mining the low grade stuff at the peripheries of the deposit, the IO price halves, and assuming no cash has been generated since the half yearly, then at a p/e ratio of 10 the shares should be trading at 39.1 cents.

Oh My we've fallen below that too now, Oh My is it a bargain bargain or wot!!!

Assets other than cash still have value (ie. houses aren't being given away for free); we're on the ready to resume mining the high grade stuff; the IO price for GRR's product is still at something like AUD$210/t; we've just had another ripper quarter.

(Please Please do not vote in favour of performance rights issues [1.15b shares on issue for goodness sake], because all that ends up happening is that the manager's pockets get bloated during the prime years, but there's no way for shareholders to claw it back during the lean years :/)