Grange's Iron ore pellets at A$427/tonne, page-41

If they paid a 40c/share dividend tomorrow, I'd bet that you wouldn't see a shareprice of 12c/share as that would suggest a P/E ratio of 0.25!... or to put it into other words: GRR would earn these 12c/share within one quarter at current Iron Ore Prices!

-> Therefore an ex div shareprice at around 40c/share after the payment of a 40c/share dividend should easily be on the cards as that would merely represent a P/E of 1!

Another way to look at things is the following thought experiment to show how undervalued GRR is:

Current OPEX: 105 AUD/t
Current Sale Price after Freight Costs: 406 AUD/t
Current operating margin: 301 AUD/t
Annual production/sales: 2.5 Mio t

After tax Profit p.a. (30% tax rate): 527 Mio AUD = 0.456$/share in earnings (going straight to cash/receivables or NTA) per year
After tax profit p.m. (30% tax rate): 43.9 Mio AUD = 0.038$/share in earnings per month
After tax profit p.d. (30% tax rate): 1.46 Mio AUD net profit per day at current IO prices or 0.0013$/share in earnings per day

--> With every passing day at these IO prices, our company increases the underlying intrinsic value of the company by 0.0013$/share or 0.038$/share per month or 0.456$/share per year. Since the last quarterly, our underlying assets have increased around 0.114$/share.

You can literally count the millions in profit every day and here we are, still talking about a company with a market cap of ca. 600Mio AUD and not a multi billion blue chip company.