Trading at cash and receivables and PE of 4, page-16

The Southdown IRR copied from announcement in February for a 10mtpa:

"DFS confirms a mine life of 14 years within the current permitted area, generating an NPV at a discount rate of 10%, of A$1,008 million and an ungeared IRR of 16.6% (seeannouncement dated 1 May 2012)."

A 5mtpa version stated:

"The project free cash flows (after tax), were subjected to a discounted cash flow analysis
(DCF) using a discount factor of 12% nominal. The net present value (NPV) of project Free
Cash Flow for the 28-year plan is estimated at $753 million as at the feasibility study date,
generating an internal rate of return (IRR) of 19.2% per annum. This is represented by
some $13.14 billion of Free Cash Flow over this plan, excluding initial capital and is based
upon Operating Sales less Opex, Sustaining Capex and ongoing rehabilitation expenditure.
For the 28 year mine plan the average concentrate price assumed for this product grade
is US$109/tonne at a AUD:USD exchange rate of $0.75."

I don't have comparisons but the economics aren't jumping out at me as a must do project. Considering where in the cycle we are and the like.

Makes much more sense to optimise Tasmania and ride the high price, pellet demand boom.

But I think I read in some old threads here, we have a major shareholder who may have their own interests with where the supply is going. Is that the case, does GRR supply related parties with the iron ore?

If that's the case well there won't be a rush to maximise return necessarily. I would still think there's a rationale for this to somewhat track cash backing or at least ebb and flow through that point so some growth could still come naturally as the bank account grows.

Seems an inefficient use of a capital, even if a safety net.