AGO youre looking at 25mill tonne production, and the CASH on...

AGO youre looking at 25mill tonne production, and the CASH on hand is building each qtr with current opps raking it in at these historically very high IO prices.

In 2 years youll have 25mtpa+ production. Next yr prod is growing to what 12mtpa .....so you have HIGH GROWTH, NO DEBT, AND CASH FLOW AND CASH ON HAND TO FUND THIS GROWTH

Currently theres circa 900mill shares. I reckon for expansion plans they may have to issue more shares?? Lets assume and extra 200mill shares to make the issued capital circa 1.1 bill

At 25mpta prod in 2years the IO price will be say $110/t

Costs will be say $40/tonne

Margin = $70/tonne

So: 25mpta * $70 margin = $1750

Assume tax of 40% (although theyll have writeoff for CAPEX in first few years of expansion, but assume long term tax of 40%)

So $1750 profit @ 40% tax = 1.05bill

So cash flow post tax = 1bill

If you take away depreciation etc youll have say 950mill

So 950mill/1.1bill shares = 0.86

Give PE 10 (its still gonna be a GROWTH company at 25mtpa so you can easily give a PE 10), and you get $8.60 price tag

Now with all the MONEY coming in @ 25mpta production circa 900mill profits!!!! They can easily GROW production to 40-50mtpa!

Its a CASH COW

Nuff said.