fas attempt at evaluating , page-7

Hi Wannabeawinner

I posted this back on the 5th of November. Since no one else has responded I thought I should, obviously this is back of an envelope stuff but you may find it interesting. If anything I was quite conservative and I didn't enter SHIP north's potential into the equation.

These are very very rough calculations and are a summary of what I came up with.

Iron ore price $100 per tonne.
FAS profit per tonne $30
FAS producing/exporting 3MTPA.
Current mine life 8 years ( based on 24MT )

3MT x $100 per tonne equals $300M revenue per annum.
Therefore profit per annum @ $30 per tonne equals $90M.
$90M x 8 years equaYls $720m
$720m divided by 1.3B shares on issue equals around $0.55 per share.

I would expect FAS would have to ramp up to 3MTPA, maybe start at 1MTPA........

I also think based on the resource (alluvials only) that $30 profit per tonne maybe conservative. $100 per tonne IO price I used as a ball park figure and could quite easily be considerably higher.

Happy to hear if other holders have worked out something along the same lines.

I hope this helps and by the way I want you to be a winner to!

Cheers.