I think management need to be congratulated if they have secured...

I think management need to be congratulated if they have secured an Unconditional Offtake. If it is a steel mill and not a trader then that will put FAS on the map. It will be interesting to see how much money comes along with it.

If we assume that FOB costs will be approx $50/MT + Shipping $8/MT + State Royalties $8 + Private Royalties $4 = $70/MT or $63 USD.

Current Iron ore price is $130/MT for 62%, I think they would sell Long term offtake for around 15% - 20% below this. $105 - $110 USD or $115 - $120 AUD.

$45 - $50 AUD Margin. This is best case. I think margin is under $40.

Total Project is $800 so 50% is $400M. However since port has not been allocated, finance not unconditional, and Feasability Study not completed then it may be 10% of NPV being $40M or 2.5 cents

When FAS is producing 2M MT per year, under JV it will make $20/T so $40M. so 5x earnings is $200M market cap. or 10 cents.

However that is when they are exporting. So probably 2 - 2.5 cents is a good valuation in the interim.

Remember also that out of $20/MT that FAS make they may have to pay marketing expenses to whom ever introduced them to the offtaker, wages, directors fees and consultants fees.

My view, for whatever it is worth is that 2 cents may be fully priced in at the moment.

Remember as well that FAS will not receive revenue until they sell iron ore which could be three years away. By that time there could be 3B shares on issue. That would then dilute existing shareholders even more.

So with market cap of $200M once they are producing could mean a fully valued share of 7 cents a share.

THIS INFORMATION IS MY OWN OPINION TAKEN FROM GENERAL INFORMATION AVAILABLE.