what should the sp be?

Interesting to see that when the iron ore price was previously in the current realms (March 2012, it reached $138/t, compared to today at $150/t for 62% Fe as opposed to the 65% Fe produced by GRR) the GRR share price was a tad over 60 cents. Cash, costs and mine life remain very similar to then , yet the price we see is $0.375. This represents a 39% decrease.The shares lost 20 cents when Russell Clark left, but the company continues to operate OK and has made the right decision on Southdown since his departure.

In the same time Mt Gibson (MGX) has seen its share price drop by 28%, FMG's has dropped by 7% and Atlas has dropped the most at a 44% decrease, recognising it produces lower grade ore than GRR, and therefore attracts a lower price.

GRR's mine life is 18 years which leaves MGX, AGO and BCI for dead and maximises NPV.

There is no reason why the GRR price should not continue to climb. They still have lots of cash, the spending on Southdown has stopped, the Savage River mine is hitting higher grades once more - and there is no reason for there not to be a take over premium - this would be a great fit for BCI, Atlas or MGX - and the company remains significantly undervalued.

Go Grangers!