confident that mmx is going in right direction, page-25

Joker, if you are referring to the Merrill Lynch report then what you have stated is not correct.

The Merrill valuation of $13.20:

- assumed the infra would be 3rd party (i.e. less cost for MMX, but no infra revenue).

- the $13 was a DCF/NPV valuation. NOT based on a PE. Using a PE for a single mine is not really a good valuation measure because it has a finite life. PEs are generally used to value industrial companies which have an indefinite lifespan and therefore justify an earnings multiple. Merrills had a short term target of around $7, which rose to $13 once they lowered their discount rate to a normal level, and at the time MMX begins production on Stage 2. Several of the factors that justified a higher discount rate at the time have already been mitigated.

- it was certainly not a best case scenario. 1. They assumed only 380mt is proved up. 2. they assigned no value to Weld Range (Weld Range is almost certainly worth something to MMX given proximity to MIS ore. 3. based on conservative iron ore price assumptions which have already been blown out of the water 4. assigned no value for infra. 5. various other points that I can't remember off the top of my head.