STTCOMP GRR FA Long671 Mill MC @ 58c per share ,1.1 Bill shares...

STTCOMP GRR FA Long

671 Mill MC @ 58c per share ,
1.1 Bill shares on issue
332m Cash (as per March quarterly)
Debt approx 10 mill.

Life of mine - Over 10 years

Have tipped this previously and iron ore has gone from strength to strength and i think this is about to go on a tear.. The below is my back of envelope calculations on what it could be worth if valued like other profitable businesses.

Catalyst:

	ASX GRR
1	Shares on Issue	1,157,338,698.00
2	Cash / Receivables	$332,020,000.00
3	Cash / Receivablesvalue per share	0.286882311
4	Debt	0
5	Current Net Position	$332,020,000.00
6	Share Price	0.58
7	Market Cap	671,256,444.84
8	Assumed production costs (AUD)	113
9	Life of Mine/Production asset (years)	10
10	Pellet price AUD	380
11	Earnings per tonne	267
12	Likely annual production rates	2,500,000.00
13	Assumed EBITDA	667,500,000.00
14	EPS	0.576754239
15	Assumed PE ratio of 5	$2.88
16	Assumed PE ratio of 5 + cash	$3.17
17	Assumed PE ratio of 10 (life or project) + cash	$6.05
18	25% discount on PE of 5 + cash (Iron ore price, production cost uncertainty etc)	$2.92
19	Return on investment using above 25% discount rate	504%
20	Current annual dividend	4c

The above is not advice and are my back of the envelope calculations only. They could be wrong so do your own research.

Alot of variables here including the iron ore price sustaining the current move.. Even if the price halved from here this would still be a screaming buy for me.

Do your own research, speak to a professional as i am not one and this information could be wrong.

I have personally gone all in on this one however due to the above.

Good luck