With the JV announcement GBG are 50% in a $1 billion mining...

With the JV announcement GBG are 50% in a $1 billion mining operation for an investment of about $60 million and they still have the the haematite play.

If the magnetite is around 8 million tonnes - four million to GBG and say 2 million DSO - a total of 6 million tonnes. I would opine a profit about $40/t on the magnetite and $25/t on the DSO to give a total of say $200 million - after tax about $140 million.

This is a long life project - around 50 years for the magnetite so give if a P/E of 10 for a cap of $1.4 billion.

There are some more shares to issue to give around 500 million so the price in 2008 [on these numbers] could be around $3.

Most of the risk has been taken out of the project and there are few long life iron ore plays available so a value around $1 in 2006 seems feasible.

Certainly an easier call than some of the uranium explorers.