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.
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Last
27.5¢ |
Change
0.005(1.85%) |
Mkt cap ! $312.4M |
Open | High | Low | Value | Volume |
27.0¢ | 27.5¢ | 26.8¢ | $138.5K | 507.8K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
31 | 560300 | 27.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
27.5¢ | 206629 | 29 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
31 | 560300 | 0.270 |
21 | 432197 | 0.265 |
27 | 647074 | 0.260 |
12 | 214528 | 0.255 |
26 | 433802 | 0.250 |
Price($) | Vol. | No. |
---|---|---|
0.275 | 208222 | 30 |
0.280 | 265969 | 14 |
0.285 | 203482 | 12 |
0.290 | 508340 | 17 |
0.295 | 1718636 | 10 |
Last trade - 13.34pm 03/09/2024 (20 minute delay) ? |
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