no flood of spp sales ???, page-2

Guys before the 75% BCI/FMG JV announcement. We were geting volumes around 50K a day. Yesterday was close to a Million!

Who's selling and who's buying?

What are the big guys up to?

Have Regent gotten rid of ALL their insto shares?

If they have, who sold close to a million shares yesterday?

Let's say that some are SPP shares, where's the SP drop?

Is someone accumulating?

Is it Mac's clients?

My gut's telling me something's not adding up, that something is up!

Am I the only one?

Sorry but I don't buy that the price is holding up on the back of the quarterly. From a long term holders perpective, I consider the quarterly to be a little lackluster.

Also, I note from the quarterly:

"The remaining low grade ore is being stockpiled for future blending or use following the finalisation of ongoing benefication studies."

The surface miners have moved through all of the low grade ore now so the LG stockpile will be handy for blending with 57.5% Fe Outcamp DSO for a 57% Fe blended grade. So perhaps some of the LG ore in the foreseeable future will be blended. But, in my opinion most of this stockpile will become BBSO, infact I'm now assuming as much. I also think that although management say that studies are still ongoing -- which they indeed are. Management have a very very very good idea of what will and won't be beneficated from a technical point of view. I believe that work has now moved to drilling assays and more critically 'feeling' the demand from off-take partners. FMG marketing will certainly help.

There were two things that tipped me off that BCI could be selling an even lower grade than even they were expecting 24 months ago.

According to Macquarie notes, BCI sent a bulk amount of LG ore to overseas customer/s during the last quarter. I don't think this was to make up the numbers regarding export figures but rather to trail the material through Asian mills sintering and milling stages. In other words, the product was being put up for sale and possible buyers were able to see the performace of the material first hand.

The other thing that tipped me off was project inventory manager for BCI, Rob Williams reply to my email. Rob wrote that BCI were gauging to see whether a simple dry screen or a wet plant would be the most effective way of treating the LG ore.

My hunch is this. At the start, BCI management were happy to have a buyer for the 55% Fe ore. I suspect that through dry screening the 55% Fe material was able to be beneficated to a 57% Fe grade in-line with the current Bonnie fines export grade. However I once again suspect that management are now considering that they may have a buyer for even lower grades, hence the wet plant.

Simple dry sceening is the easiest, cheapest form of benefication. It's what you use when you want to upgrade your material for a low cost. Wet plants however are more expensive since wet plants are used to wash the clay out of the material. In my opinion, the fact that BCI is even contemplating using a wet plant is very positive. It to be means that the selling of the 55% fe ore is now a foregone conclusion, everyone is now talking about what's happing to the grades even lower than this.