Very few companies actually "Prove" their resources before they...

Very few companies actually "Prove" their resources before they mine them, hence using the JORC resource estimate. In any case, you stated they had and "average grade", I was simply pointing out that over 40% of what they have found so far is above 60% fe and that is in no way "average".

Do yourself a favour and read the analyst's reports on the FMG website. It shows a fundemental undervaluing of FMG compared to BHP and RIO based on iron ore assets alone. Now this was based on a share price of about $42 or so, but with the increase in reserves, BHP takeover of RIO and extimated ore prices for next year, the prices around $59 look ok.

It shows the estimated EBITDA % of 74% for FMG, vs 59% on average for Rio, BHP and CVRD for 2008/09. By 2010 this gap is expected to expand to 26%. That means FMG's costs are expected to be HALf of BHP/RIO/CVRD. (26% costs initially for FMG vs 41% for BHP/Rio - if this extends to a 26% gap as predicted it will be 26% costs for FMG and 52% costs for the others)

I dont really care, I like them and think they'll get to $10 by May (after 10/1 split). Thats a good enough return for me. You guys can do what you want.