Lets assume June's Iron Ore spot average = $US92 & AUDUSD =...

Lets assume June's Iron Ore spot average = $US92 & AUDUSD = 0.925

1H14 eps = 14.8
2H14 eps = 7.1 (calc's below)

FY14 eps = 21.9

FY14 Gearing = 32.2% (down from 36.7% end FY13)

FY14 Stat Net Debt = $1,824m. A 14% fall in 12 months!

Fy14 Capex = $437 or $75m more than DA as well.

When you think about 14% fall in Net debt and combined capex spend which will produce EBITDA and cash saving in years to come...

1) Additional 15% Production for mining consumables
2) Steel $40m a year cost saving
3) Additional 400kt Iron Ore production utilising full port capacity.
4) Mining Consumables $15m a year cost saving from Newcastle
5) Materially lower interest payments FY15 = $94m down from $114m in FY14, A $20m saving.

Using IO = $US105 and currency = 0.925 I get a Net Debt down to $300m in 5 years. That is after a 12 cents a year dividend, which will should be franked from FY16.

Calc's
EBITDA breakdown
Mining = 272
Mining Consumerables = 85
Steel = 20
Recycling = 5
Other = (23)

Total EBITDA = 359m
Depeciation = (181)m
EBIT = 178m
interest (52)m
NPBT = 126m
Tax = (29)m
NPAT = 97m
EPS = 7.1