Following on from Ore's sleuth work.At 30mt annual production,...

Following on from Ore's sleuth work.

At 30mt annual production, 250mt deposit so mine life of 8 years, assume a long term IO price of $100.

Assume also a royalty rate of 2% assuming FMG pay a lower royalty rate for higher yearly production as an incentive to mine IV quicker.

I get to a simple NPV of $320m for Iron Valley or $1.98 a share.

Compare against the current share price of 84c, 61c of which is cash.

Zero value attributed to Bungaroo and the magnetite deposit, all free upside if IV goes into production.

IF looking for a rebound play on FMG, China and the Iron Ore price then surely IOH must be a prime contendor with a current 61c share CASH backing.

Of course the market is thinking there is no rush but looking at the FMG share price things can move in a hurry.