answer to post on fms thread about bci, page-3

Hone, I agree you speak from a position of knowledge, and you make a good point about your Board not having to do due diligence, etc. on buying back a stake in itself. But both your Board and FMG's Board have the same level of knowledge about the likely course of iron ore prices, and the idea your Board outwitted FMG on such a buy-back I find hard to believe. Mr Forrest, without the certainty that iron ore prices were about to rise dramatically had to sell your Board back a stake at a low price? No one knows the future direction of iron ore prices (even if Goldman Sachs thinks it does?), so I tend to believe your Board got lucky on that one, although as you say the Board did the right thing to buy itself back rather than an unknown iron ore production operation. Agree to differ on that one. I think I have done the right thing to buy an explorer rather than a producer despite the (temporary?) outperformance of BCI relative to what I've bought, but we'll have to see on that one! :)