please no scrip bid from bck next week, page-5

"RIO would be mad not to try secure our high quality resource for longetivity"

RIO would be mad to make a bid for FMS as RIO:

- Would have SH's burn them, especially the large players and especially after there debacle over Alcan and Riversdale
- Are currently divesting assets or looking to divest
- Would not classify FMS as a Tier 1 asset
- Have got enough debt at the moment
- Are putting money into their Guinea project
- Are on track to produce ~350 million tonnes of IO by 2015

That's all I can think of at the moment but have a look on the RIO website for more reasons.

"(FMS have shown they will not discount the resource)"

How have they shown this?

From what I can see the market has spoken quite loudly and discounted the respurce for us SH's.

"Demand for IO will go up and down but mid to long term it can only go up."

Of course it will, as the population increases, demand increases, but you wouldnt spend money on a project that doesn't show current value. What I mean is that FMS stated they need ~$1 billion dollars to get the PIOP up and running by 2015 (still think 2015 is hoping), and is their value right now to even spend $500 million on this? I would have to say no.

I have said it beofre and I will say it again, the perception on the FMS threads between hope and reality is very wide and large. For the past year the SP has spoken even though market factors have played a role, their is no value attributed to FMS's PIOP hence FMS is trading @ 2.9c.