If you work on fire sale of all the assets, then net proceeds would be much higher as you quoted, with comparison to Roy Hill and Sino Iron Ore project.
If you work on PE basis, it would come up with much high valuation.
You can have a look at my early post, link provided below.
Personally, iron ore price should be minimum around $50/dmt as most mid and small producers break even point, if price sustained at $50/dmt, those small and mid producers had to shut down.
For FMG, if spot price sustained at US$50/dmt, FMG still can make US$9.45/t profit margin, can generate net free cash flow around $1.5b per annum, so there would be no problem for FMG, IMO.
http://hotcopper.com.au/threads/snapshot.2502364/
Iron Ore Price, page-250
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Last
$21.92 |
Change
0.350(1.62%) |
Mkt cap ! $67.49B | |||
| Open | High | Low | Value | Volume |
| $21.60 | $21.95 | $21.54 | $94.22M | 4.315M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1000 | $21.91 |
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| Price($) | Vol. | No. |
|---|---|---|
| $21.93 | 18370 | 7 |
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