I didn't agree that 1/3rd was from Iron ore.
I used madmarket's assumption.
1/3rd of the price is Olympic Dam. I make no judgement on the value of BHP's Iron Ore other than that BHP makes 1/6th of it's profits from Iron Ore
Yes they "have" over 1 billion tonnes of inferred resource but it isn't proven and in any case hasn't been made into a reserve and hasn't been dug up at all.
The vendors of their equipment don't even know if it will do the job.
Anyway, best case is that it takes 4 years to repay debt and after that they will have a PE (at current prices)of 11.1 with no dividend and non money for upgrades.
ZFX has a PE of 8 and pays a large dividend.
Risks include their mining methods not working, Cyclones, bottlenecks, equipment failure, manning, supply chain, rail problems... the list goes on. All of these have rather large downside scenarios such as bankruptcy.
I didn't agree that 1/3rd was from Iron ore.I used madmarket's...
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