True value around $15-$18, page-51

Outsiders will never understand how Chris operates.

He extracts value from an asset via several streams.

- Mining services for life of mine. US$2 per tonne iron ore. (Onslow is 50 years life) irrespective of commodity price
- Infrastructure - E.g Haul Road, Transhippers etc again per tonne of Iron ore for life of mine irrespective of commodity price
- Transporting FIFO workers to/from sites via his inhouse airlines that charges the joint venture just like a commercial airlines
- In housing all construction , engineering work and absorbing his labour and overheads onto that plus charging a margin
- In housing the Rehab and making money from the JV
- Commodity revenue

He spent 3.3 billion on Onslow and got JV partners to reimburse him 0.8B out of that. He sold half of the road to MSIP for 1.3B. The net cost of Onslow to MinRes is $1.2B and what do we get for that

a) $1 billion EBITDA per annum for 50 YEARS even at todays iron ore price
b) $0.6B Services EBITDA per annum for 50 YEARS irrespective of iron ore price
c) Optionality to increase the output from 35MTPA to upto 80MTPA if market is favourable

Chris could EASILY sell down the 60% interest in Onslow for $5B once fully ramped up (Thats a conservative 5x multiple of EBITDA at consensus iron ore) while still retaining the $600m services value stream.