scrap paper valuation

I thought I would try my hand at performing a very rough, scrap paper valuation for Sundance's as far its future potential share price is concerned.

It makes sense to me, however there may well be problems with my logic and I also conceed that there are many variables.

Anyway, here goes.

Shares: 2,711,395,932

Estimated Annual Earnings: $1,521,450,000 (based on 35MT x $43.47 operating margin)

Earnings Per Shares (EPS): = .56 (Shares / Earnings)

Now,

Price Earnings Ratio = Share Price / EPS(.56)

Now the industry sectors P/E Ratio is 16.05. So using this figure,

P/E Ratio(16.05) = Share Price / EPS (.56)

So therefore, Share Price should equal P/E Ratio x EPS.

Now this is where I question my logic because 16.05 x .56 = a share price of $8.99

Other factors that could increase this valuation include:

- Using an Iron Price of $100+ instead of $63
- Using Annual Tonnage of 100MT instead of 35MT

Obviously you also need to take into consideration the impact of deal negotiated with strategic partners.

Is someone able to shoot me down and punch some holes in my logic, because my valuation is starting to scare me.