Hi guys,Owning a couple of 100k of these, I'm hanging in as weel...

Hi guys,

Owning a couple of 100k of these, I'm hanging in as weel and for the longer term(2010/2011 or so) this is (to my opinion) a tenbegger if you look at the potential of FWL:

At producing 1 mln tons MPI a year and given their very conservative MPI price of 422 A$ (at this moment the spotprice is around 500 US$/tonne) the EBITDA is 170 mln A$.
Offcoarse their biggest challenge will be to attract money to finance the capital costs (700 mln A$ in several phases); partly by shareplacements, offtake-agreements, Joint-Ventures, cashflow once running or debt-funding.
Suppose they will end up with 350 mln shares (a fivefold compared to present fully diluted situation) and that the extra income of a higher MPI price will offset the Interests,Taxes,Depr. and Amort. and several other costs/income dillution, the expected EPS is roughly 0,50 A$ !! This could mean a Shareprice of 5 A$ (20 times nowadays SP !)
So even with 700 mln shares this still is a tenbagger in 3 years! Just to draw some scenarios...
Management, Tenements, Location, Logistics and Marketconditions are all supurb here

Rgrds Klmarc

Disclaimer: I do own FWL and this is my personal view; DYOR!