Ann: ASX Update, page-22

All I can see atm is the potential that Patrick Teo's mate maybe gives them the $10m to come out of suspension it's quite a large punt on their behalf though we could still then wait a year or two for finance, while the shakeout of the smaller higher cost producers continues and an anticipated rise to $50-60/ ton occurs. I believe this was the plan potential discussed once it was evident they missed the boom and the shakeout was beginning. Hold on and ride it out etc. least no longer any competition for space at Esperance in fact who knows if there's some nickel facilities there now saving them the $50m on sheds and port facilities

It really depends on whether China continues to need substantial amounts of iron ore and how much of their domestic mines they close out. The ~800mt of steel they produce per annum apparently they only need half that once they stop modernising some indications are they have $28 trillion in debt 60 million odd empty houses and a total debt to gdp ratio of 280% somewhat higher than the USA so there is some definite concerns there we could have seen the biggest Ponzi scheme in history. However a small producer like FAS could lock in all the steel sales they need from one steel mill but would still need to manage to be profitable in a suppressed market.