Pellet Price, page-207

Thanks for your comments folks. I estimate they will earn a minimum this year, of 7 cents per share.

They have grossly underpaid dividends in previous years and I think they owe it to shareholders to give back a little bit more this year. They have the cash, iron ore prices are holding up and demand for pellets is increasing. I looked at an old presentation from 2012 yesterday and it showed the demand for pellets is going to increase by 4 times. (Tried to post the page but couldn't).

Next years EPS should be 13 cents per share, if IO prices hold up. So future is looking positive.

Unknown is the gas price. Looked everywhere yesterday to find out details on the gas contract, could find much except who they get the gas from.

They should revalue up in the current year the assets, given current cash flows, iron ore price, exchange rate and production increase due to revamping of the mill. This has been excluded from the above current years earnings estimates. I'll be interested to see what the directors decide and what the auditors let them do. They were very reactive a few years ago to write the assets down when the IO price tanked.

Annual results will be interesting.

Best wishes to all.