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http://www.smh.com.au/business/catholics-hail-an-investing-miracle-20101013-16k2o.html

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"..valuation for FMG as a 355 mtpa [million tonnes per annum] producer at a long-term iron ore price of $100 [per tonne] is $23 a share."

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BULL'S ROAR

One of Fortescue Metal Group's most vocal cheerleaders, the Southern Cross Equities director Charlie Aitken, has made one of his boldest calls yet on the iron ore miner and has again appealed to the nationalistic tendencies of investors.

''This is a great Australian success story against huge odds [breaking an oligopoly] and in the face of tremendous investor and analyst scepticism,'' said Aitken about Fortescue in a note yesterday, where he was even more bullish than the Southern Cross analyst Fleur Grose.

Grose put a $8 a share 12-month price target on the stock, which closed at $6.30 yesterday, but Aitken said: ''And just to keep the dream alive for those of us who dare to dream, our 'all goes right' valuation for FMG as a 355 mtpa [million tonnes per annum] producer at a long-term iron ore price of $100 [per tonne] is $23 a share.''

Aitken, who in the note reminded his clients that Fortescue boss Andrew Forrest was one of his ''personal friends'', did not appear concerned by the miner needing to pay arguably one of the biggest break-fees in corporate history. A massive $US650 million ($658 million) premium to face value repurchase of its notes as part of a debt refinancing.

The concerns Aitken held for Australia several months ago - when the debate on the mining tax was in full swing - also appear to have abated. ''Go entrepreneurialism, go capitalism, go growth, go Australia,'' Aitken said in his latest note. In May, Aitken had expressed his grave fears for Australia.

''I am watching Australia being de-rated before my eyes. It's a disgrace, it is avoidable, but it's happening. It's like watching a bus crash, but a bus crash which I had a premonition of, yet, in which I am a passenger,'' he said.

ON THE RISE

Aitken's upbeat commentary was only matched by Fortescue, which released its annual report late yesterday. Fortescue disclosed its executive director, Russell Scrimshaw, had a tidy pay rise on July 1, befitting an executive working at a big miner. Aside from enjoying a $240,000 base pay rise to $950,000, Scrimshaw has also been allocated a $980,000 incentive payment this financial year. His base pay has tripled in the past three years. Shareholders are also being asked to award Scrimshaw a further 89,526 bonus shares at the upcoming annual meeting.