phosphate at balla balla, page-8

Foyle, we're on the same page I think. I'm in here for the iron ore, but if they can convince me that they'll make a bit of cash on the side from titanium and phosphate and (maybe) copper, well, I'm hardly going to complain.

I think this phosphate "bull market" is a short term supply imbalance. I'd want ANY proposed operation to justify its development on a US$100/t phosphate price, not $400 or $690 or whatever we're seeing this last 3 months.

Same for AXO. If it costs them too much Capex to make this phosphate circuit, it'll be a killer.Right now the company has a $850M bill coming for its magnetite plant, plus some unknown cost for a circuit to recover its titanium (which is the direct tails from the magnetite), but the phosphate plant would be additional again, which would be a scary proposition right now.

The way I think this will pan out is that we'll get the magnetite and titanium going, and for the first 4 or 5 years they'll stockpile the phosphatic gabbro waste zone on a hi-phos stockpile, and maybe if it's justified, pay for the capex on that plant out of free cashflow.

So...2015. At the earliest.