madness to sell - love it, page-2

Wow that is very very cheap. GRR have production costs of $80/tonne. The magnetite we have must be incredibly soft and thus simple to process.

Even if iron was trading at just $140/tn, and production just began with CAP having a net 1.5MTpa, the company would still have earnings of about $120M per year. With a very conservative PE ratio of 10, you would still have a company with a market cap of $1.2B, correct?

Ramp that production up to 3-4MTpa in 2015 (iron prices still at a conservative $140/tonne), and a PE of 10 would give a market cap of around $2.4B to $3.2B. As crazy as it sounds, thats a share price of anywhere from $24 to $32 per share after the first year of full scale production!!