Ann: June 2012 Quarterly Report , page-7

No we aren't really port and rail developers, but I'm not too sure how that relates to Badondo. If the Chinese get the go ahead for Sundance it will be the Chinese building the port and rail, EQX would be taking advantage of the commercial third party access being written into the Mbalam Convention.

And if we aren't port and rail developers, why should be be getting involved in what would need to be major rail refurbishment/extensions and a greenfield port development to expand Mayoko beyond that 5mtp/a base case?

I was being conservative with my thoughts of 300mt DSO, and there will be much more itabirite underneath, just like Nabeba. For this reason I don't see why you would want to sell the deposit if there were other ways to get Mayoko off the ground.

Why would Exxaro have the whip handle if we ended up trying to get a project with a much larger CAPEX off the ground? I'd start with comparing the market capitalisations of the two and wondering which of the two parties would have trouble funding their portion of the CAPEX. After just sitting through 5 years of SDL struggling to find finance options because of their large CAPEX compared to market capitalisation, I'm not overly excited to repeat the dose. Like you said, they would either need to sell Badondo or bring in Exxaro at the project/corporate level, but I don't see why that would be all that necessary if you just started with a smaller operation at Mayoko and funded your development from your own free cashflows.

Why sell off a possible cash cow asset or dilute if you don't need to? Personally I'm not too sure how happy management might be deep down about Exxaro possibly changing the game plan AKI had, because it looked to me to be much cheaper, simpler and quicker to get a 5mtp/a operation off the ground using existing infrastructure than having to make major refurbishments to rail and building a whole new port.