what is the value of fas based on iron ore?, page-3

OK Zinzo since no one else has put any thing forward lets have a look at this.Its a tough question and this is real back of an envelope stuff.

For arguement sake and obviously at this early stage lots of variables.

Lets say FAS have 30mt and when into production can put 3MT a year onto a ship.

3MT x $140 per ton = $420000000 gross turnover per year.
Lets be really conservative and allow $40 ( all depends on IO prices ) net profit per ton which equates to

3MT x $40 per ton per year = $120000000 nett profit per year.

Lets say SHIP only has a 10 year mine life

$120m nett profit per year x 10 years = 1.2 billion.

1.2 billion divided by 1 billion shares on issue ( fully diluted )
Equals $1.20 per share.

This equation is very basic and extremely conservative and there are lots of variables to consider other than above eg other tenements holding gold,uranium,GWR shareholding etc........

If I'm way off someone let me know.

Cheers
Dave.