Iron ore price, page-861

So when you said $2 Billion to break even, All you are saying there is that investors want to earn 10% profit on their funds. (not break even at all)

So to cross that over to how much they should be willing to pay for the equity in my example, it would look like this.

Current equity per share = $3.32 (producing 29% return on that equity)

If an investor wants a 10% return, he can pay 2.9 X the face value of that equity.

e.g. $3.32 x 2.9 = $9.62

(of course the return on the equity will fluctuate year to year, so you would want to discount that expected return, but even reducing the current 29% return down to 20%, still gives the equity a fair value of $6.64 and end of year $8, not to mention a premium would normally be paid for companies able to reinvest earnings at rates of 20%)