I suspect that the relatively weak reaction to the payout is...

I suspect that the relatively weak reaction to the payout is more to do with the uncertainty (risk) of what they will do with the cash, rather than the cash backing, per se.

Don't forget, the majority ownership of the company is Chinese (Shougang Fushun 28%, APAC nearly 26%) who will still want access to IO through their own channel. The company has reiterated that it is seeking entry into other commodities, a position that is agreed to by these shareholders (APAC, in particular, will be interested in other commodities - probably copper-gold). One can only hope that the KI operation will be vigorously economically assessed against other opportunities (and I have absolute faith it will be as the management has form).

I believe we will see a real SP event when they announce their investment intentions. This should be sooner than later as the business disruption part of the insurance claim is, in theory, easier to assess then the sea wall failure.