success beyond expectations

MMX will exceed all the expectations of the analysts and go on to be a financial success for all share holders because it has all the elements that are required for a world class iron ore mine. These are:

1. Quality ore - +60% Fe - better than FMG;

2. Large Ore body - no final report yet but look like jack hills plus weld range is about 800 million tonnes; excellent if so because it will give the mine life 25 years;

3. Transport - with POSCO, TOLL and MITSUBISHI the rail and port will be built within budget and on time.

4. Experienced Management - have mining operations in place and sale contracts for years into future with POSCO taking 10 million tonnes / year.

On this basis mmx is one of the best iron ore mines in the world and at $4.00 is cheap as chips.

Here is my back of envelope calculations of long term profit for mmx:

MMX will sell 25 million tonnes/year at about US$60 / tonne with costs at about US$20/tonne ie profit about US$40/tonne thus:

Long term profit = 25 mill x US$40 = US$1 Billion / year for 25 years.

I sure am glad that mmx management hedged the aussie $. Dividends will be fantastic. Its the best long term investment I have ever had because of huge capital gain and dividend income in a few years.

sp of $4-$10 is cheap as chips.