it seems to me that they have written every asset down to zero...

it seems to me that they have written every asset down to zero and the only things left in the balance sheet is the $90m rough cost incurred constructing the STDSF. These write off's made some sense when io prices collapsed and I imagine the auditors were not complaining about the valuation.

where that comes undone though is when io prices recover ??? do they revalue the assets upwards? my hunch is they wont but the probably should.

regardless, it's all about earning capacity and earnings stability.

my sense is that during the past 18 months we have searched for and probably found the bottom of the io market, USD50 everybody goes broke.

USD80 every body seems excited. 62% Fe content is and will forever be worth less than 65% because of the [significantly] lower energy input requirement .... see China's smog issue now.

So A$100+ seems about the right money. If I'm right then, dividend stability ought to become a reality and 25% payout rate seems a reasonable target.

time will tell