Ann: Quarterly Activities and Cashflow Report, page-39

"What the FMS board must do by acting in the best interests of the company is to ensure that Flinders Mines does not become a Direct Shipping Operation (DSO) for BBIG, where all ore is sent by rail for BBIG to then beneficate the ore and then earn the associated margin with the increased fe% of the iron ore."

Spot on Cassidev - whats the bet a scenario such as this, will be the proposal presented to shareholders at some stage?
We will be told that PIOP ore is lesser quality, that the discounts applied by the market are so large that the resulting prices FMS would receive would make PIOP unviable. Thus the only way FMS can make a business case to develop PIOP, is to beneficate PIOP ore to 62%.
But FMS would not have the technical data, the technical skills, nor the funding available to allow it to beneficate the PIOP ore.
Therefore your Board recommends a scenario where PIOP sells the ore to BBIG or a Chinese party, who then beneficates the ore to a marketable and more valuable level.
We are being preconditioned on the basis that the PIOP ore must be upgraded, and that FMS will need CR or external funding to upgrade the ore.
Here it comes.

"....During the quarter ending 30 September 2018, Flinders Mines Limited (Flinders Mines or the Company) continued with the analysis of the results of the asset maturation work. The widening of the market discounts and penalties associated with lower than 62% Fe product and high alumina and silica impurities appear to be of a structural nature and it is the view of the Company that such discounts and penalties could have a material effect on the pricing of the probable PIOP Fe product. Due to this concern the Company has started work on the options to upgrade the potential PIOP product grade and to add to the existing JORC resources available for mining. This work will continue during the December 2018 quarter. The Company notes that significant costs will be incurred to complete this work and its progress in 2019 will be subject to the availability of funding."