HomeBrand,Your'e right - that does raise some very interesting...

HomeBrand,

Your'e right - that does raise some very interesting questions

The DPS was US$4.3B versus an IE Mid of A$1.6B

Now the IE long term report has Fe price 130c/dmtu, DPS was only 105c/dmtu.

Using the IE sensitivities that -5% iron price reduces value by 440M than using the DPS price assumptions means the IE report would broadly be around ~0 value

Yet very very roughly

- IE and DPS opex costs look the same
- Capex costs not too different
- both IE and DPS have the free carry
- using the DPS discount rate of 12.5% would bring the IE report back to $750M or so from 0.
- The IE production has slipped a couple of years from DPS, speeding the IE valuation up by say two years might get the it back to say $1B.

So where did the value (US$4.3b V A$1b) go?