Iron ore price, page-856

I can't see how thats got anything to do with my point.

The Interest paid to bond holders is already expensed, it doesn't come from the NPAT (net profit after tax), so when I say the Equity is earned 29% last year, thats after the bond holders have been paid their interest and after depreciation etc.

So the 29% return on the shareholders equity, is a real world 29% return, and its a lot higher than a lot of other businesses, Wesfarmers for example is 10%, Westpac bank is 13%, CBA around 16%.

So it just comes down to how much each investor wants to earn and the margin of safety they require.

I am still confused as to why you think FMG need to earn $1 - $2 Billion for share holders to break even. $1 - $2 Billion NPAT wouldn't be break even, thats a good return on equity.