GRR Valuation, page-269

The problem GRR has had in the past IMO is it had very little realistic growth potential with the existing mine, certainly growth in LOM but limited to around 3mtpa with the pipeline. SD was a probably bridge too far at the time for a company with limited cash resources given the costs involved.

That now has the potential to change with the current windfall and IMO needs to if it wants to attract serious attention, otherwise it just becomes a small company that goes up and down with the price of pellets but with a limited future ...the real benefits of growth are reflected in future price cycles where you can get the tripple whammy of Pellet prices , ore production and a higher PE afforded bigger growth companies. However as you say Miners usually have lower PE's for the reasons you gave , FMG only has a PE of 8 and its among the best performers and would sit at the top of the PE scale.

Nothing wrong with the current set up in terms of profitability but won't attract institutions who like future growth as well as dividends...

I know there is a lot of opposition here to expansion into SD but if the company continues as it is it will drift back into relative obscurity and a low PE when this cycle has done its bit .

Cheers Whisky