At around current iron ore prices (approx $115 p/t) Iron Valley...

At around current iron ore prices (approx $115 p/t) Iron Valley will generate around $40 million cash for IOH from year one if FMG mine just 10Mt from the site.

That's free carry, debt free, based on current (realistic) pricing and that number will ramp up substantially if they were to mine (say) 15Mt just add 50% to that number. Sounds OK to me.

Did someone say capex for the barge operation out of Bungaroo would be $400 mill? How hard will it be to get the finance with no debt, $100 mill in the bank and $40 mill p/a cash flowing into the business?

If FMG take up the Iron Valley option the share price is more than underpinned by the Iron Valley royalty alone, and it transforms the company.

I'm punting on them taking up the option.