STTCOMP GRR FA Long850 Mill MC @ 75c per share approcSP: 75c1.1...

STTCOMP GRR FA Long

850 Mill MC @ 75c per share approc
SP: 75c
1.1 Bill shares on issue
332m Cash (as per March quarterly)

Life of mine - Over 10 years

Have tipped this previously and have no idea how long a tip lasts... have rerun my working due to recent market movements and applied some extreme worst case scenarios on the discounting..

	ASX GRR
1	Shares on Issue	1,157,338,698.00
2	Cash / Receivables at 31/3	$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	0.75
7	Market Cap	868,004,023.50
8	Assumed production costs (AUD)	$120.00
9	Life of Mine/Production asset (years)	10
10	Pellet price AUD	$420.00
11	Earnings per tonne	$300.00
12	Likely annual production rates	2,000,000.00
13	Assumed EBIT	$600,000,000.00
14	Tax of 30%	$180,000,000.00
15	Earnings after 30% tax reduction	$420,000,000.00
16	Earnings per share	0.36
17	Assumed PE ratio of 5	$1.81
18	Assumed PE ratio of 5 + cash at 31/3	$2.10
19	Assumed PE ratio of 10 (life or project) + cash	$3.92
20
21	40% discounton PE of 5 + cash (Iron ore price, production cost uncertainty etc)	$1.70
22
23	20% discount on PE of 5 + cash (Iron ore price, production cost uncertainty etc)	$1.90
24
25	10% discount on PE of 5 + cash (Iron ore price, production cost uncertainty etc)	$2.00

This message (and any of my posts) is not financial advice and is all my opinion and study that could be wrong so speak to a professional and certainly never base any investment decisions off anything read here by unqualified people! DYOR