perhaps

Hi all

I was at the AGM and listened to all the things that have been reported - It comes down to whether you believe KR or not

BUT -

It was after the meeting that I learnt a few things -

1) The deal is structured that once 1 dollar is forwarded to FAS then FCL are in for the lot - its $300,000,000 or nothing
2) FAS have a closed loop for the sale of their iron ore - I am not a full bottle on this but this is not the usual way of doing things and delivers some advantages to FAS
3) The security for the $300 million dollar loan is over SHIP itself - BUT SHIP North is unencumbered and is very likely much bigger than SHIP and we picked it up for next to nothing
4) Detrital Iron Ore is rare and as such FAS has a deposit that is unique (certainly in Australia) and is as low a cost option as there is
5) FCL will make a profit from the sale of the ore on the way through - again I did not fully understand this but that is how it was put to me

In the end you either believe management or you don't at which point you might as well sell
The other point I gleaned is that this is all set to happen very soon because even with the shares approved at the meeting FAS will use them up very quickly for not a lot of returnat these prices
I felt a lot better after I left the meeting and will consider doubling my position
Feel free to ask questions but some of the things I was told I simply did not fully understand

Clyde