Ann: Rights Issue Closure and Shortfall , page-17

FMG's case is different. They own the railway which worth several billions. FMG wants to sell railway (only part) and still control the railway. This way they can reduce debt (reduce cost) and make money from toll. At the same time FMG is developing lower cost mine to reduce cost.

My point is everyone is reducing cost, because it is expected iron ore price will stay around $80-100/t for many years to come. While Chinese miners will get subsidized, Australian miners will get taxed.

Eyeoverit, I think you need to realise Nose has a point. Nose's point is FWL does not have anything that can make money eg MPI (dead), new iron ore project (high cost $95/t), etc. FWL is extremely expensive at current share price IMHO, because what are you buying??? Projects that are NOT profitable.

MOL (look up) is trading below cash-backing. MOL is a miner of 1 mtpa with cost around $85/t, so they are adding more cash into their bank account, but valued below cash-backing.

I don't see how FWL can possibly start a NEW project with cost around $95/t. Besides, FWL failed to raise enough money to do anything but paying directors.

Do you want to invest in a company just to pay director fees?