Tempered Expectations

Some of the pie in the sky predictions concerning SP and expectations about increased capacity for production of iron ore need a reality check. Management needs too ensure that we can produce 62% grade iron ore on a consistent basis for a lengthy period (min 4 months) without breakdown of plant or logistics and ensure our customers are satisfied with the product we provide before embarking on expansion plans. Too many businesses fail due to too much expansion too fast. Only after we have an established ore base, customer base, cash flow and optimum production should we even consider expansion. I acknowledge that it appears we have the ore and customer base covered but we need to give some time as an operating plant to ensure the other two are covered. Our primary function has just changed in that we have now become an iron ore PRODUCER but we have these steel mills in the pipeline which is another distraction (albeit a good one) from our primary function but will provide value adding to our product. Slow and steady baby steps on all aspects of the business are the way for this company to progress and prosper which will also mean a slowly increasing SP.