look - even if they do the FMG deal, the company will need circa...

look - even if they do the FMG deal, the company will need circa 250mill they said for capex deveopment of mine plus development of 35km of rail tracks.

pattersons based their valuation on 70:30 debt to equity.

By the time YML has to do a raising for the CAPEX needed , i assume the price will be double what it is now - lets say $2.50

At $2.50, they can even issue an extra 100mill shares and do a 100% equity raising.

this will increase the equity of shares+options ot circa 185mill

With that kind of fully diluted capital base (remember Ive assumed a 100% equity option for the CAPEX), the EPS is STILL phenomanal!

using 70USD price and 5 mill proddy and 48AUD costs:

70USD * 1.13 = 80AUD

80AUD- 48AUD = 32AUD profit per tonne

32AUD * 5mill tonnes = 160mill AUD

net profit : 112AUD

112AUD/185mill shares + options = EPS of 60.5cents per share!

this involves raising $250mill via 100% equity!

if the raised 50% via equity and the rest debt, the numbers look better.

this stock is really a 'no-brainer' long term, whether they do a deal with BHP or FMG.

The FMG deal will still garner them circa 50-60cents per share raising 100% equity for CAPEX, which is a $5.00 price tag

With a BHP deal, CAPEX will be minimal, so EPS MUCH HIGHER.

Either way, YML is the stock id be recommending to my client IF i was a broker (which im definately NOT). One day id like to be one maybe as im still in my early 30s.