you are very smart in ramping down. your comparison make it looks like you comparing apple with apple, but its actually not. assuming the cost to extract the ore are the same ($25/Tonne).
AML JORC resource is 12.1b tonnes contained Fe of 4.0b mt iron. basis $1.5b for 25% of AML (ie 6$b capex) shandong have paid $1.50 per mt contained Fe
SDL JORC resource of about 2.8b mt contained Fe of 1.18b mt which based on Hanlong's $0.50c offer and market cap of $1.5b implies a price of $1.27 per mt contained Fe.
cost of AML in extract 4B MT is 12.1b * $25 = $302.5B cost of SDL in extract 1.18B MT is 2.8b * $25 = $70B
Overal cost AML is ($6b + $302.5b) / 4B mt = $77 /mt contained FE SDL is ($1.5b + $70b) / 1.18B mt = $60 /mt contained FE
if sdl is valued the same as AML ($77 * 1.18B) - $70b = $20.86B even if you take out capex from that and SDL only own 65% of project due to goverment options it still value sdl share price around $5/sh
SDL Price at posting:
46.0¢ Sentiment: LT Buy Disclosure: Held