Deansy, yes our old mates at Fosters have cut their price target...

Deansy, yes our old mates at Fosters have cut their price target by about 50%... Ouch. Personally I can't understand why a broker like Fosters, after being so bullish on IOH are now dropping the price target. IOH are within six months of establishing a potentially big income stream from Iron Valley and on top of that have firm plans to develop Bungaroo... To me this just proves that brokers are sheep like everyone else & they have fallen into line behind Bell Potter.

I notice the forecast capex for 5Mtpa trucking/barge operation out of Bungaroo is just $400 million.

Back of an envelope calculations, say $50 p/t opex, iron ore price around $110 delivers $60p/t or $300 million gross profit from year one. Potentially the debt could be comfortably repaid within two years & then it's blue sky pending a reasonable Fe market longer term.

The numbers stack up nicely for a smallish operation - I would presume the numbers out of Anketell would be even better hence it's plan A.

Add to this the kicker of royalty payments out of Iron Valley if FMG take up the option... This stock is a belter of a punt from here IMHO.