Nice post Slura.I have one question, which I would appreciate...

Nice post Slura.

I have one question, which I would appreciate thoughts on. It is in relation to P/E.

I am very interested to gets peoples thoughts on what 'fair' P/E for a co. such as MHM may be worth.

I want to give two hypotheticals:

1) MHM has Geelong and SSC and that is as far as they go and their earnings are, say, $50m/pa EBITDA.

What P/E would one assign to this, assuming that, a) these two will continue 'in perpetuity' and MHM will earn the same amount each year?

Would a P/E of 5 be reasonable, or the norm?

2) Same as above, however, there is still the opportunity for further expansion, Alcoa, rest of the world, etc.

Would a P/E of 10 or 15 be reasonable, or the norm?

I've currently started turning my attention to P/E's more and more, for 'non-mining' co's in this sector, and am curious to know if there is any 'general' rule of thumb/formula, of which people follow/are aware, in relation to both scenario's above.