re: Ann: Iron Valley Project - Construction C... $20m pa EBITDA...

re: Ann: Iron Valley Project - Construction C... $20m pa EBITDA on 4mpta production, $100/t FOB price.
$75m pa EBITDA on 6mpta production, $120/t FOB price.

Given the current IO price is around $130 in AUD terms we know that the royatly rate kicks up on higher FOB prices.

Interesting also as SW mentions above that take or pay provision and whether we get the royalty calculated on a 4mpta production rate no matter what. Preusmably there will be a 6-12month production rate ramp up.

The deal with Min Res was signed in Feb 2013. we hit a high of $1.225 in March and then got whacked all the way down to 63c in the dog days of July.

The market has taken a wait and see approach it seems, not wanting money put away for a long time whilst waiting for Iron Valley to get approvals and MinRes to start construction. Now that we have a more finite timetable to first revenue then the market will be forced to start valuing IOH on a revenue basis.

This could take another say three months but as development updates start coming from MinRes then at $50mtpa then I cant see us not being valued at less than the $1.225 we were trading at when the the deal was announced.

Bucklands as a free kicker too.

Its been a long long wait but light a the end of the tunnel.