please explain, page-30

Known facts or assumptions

Target area 55-56%%fe cid extension of FMG serenity deposit. FMG serenity has .081% p%. Not a DSO target.

The few drill results so far higher level of impurity than FMG so only time will tell if improves as average is the key at the end of day. So far not encouraging and nothing to get excited about.

Cannot locate any company with such a resource that has done anything of note.

Examples of low grade DSO high p% deposits include Brockman, Ferraus and Polaris.

None of these have very high market caps even though they have advantage over FMS in that..

1. They have identified DSO. FMS have not targeted DSO but if part of the deposit proves up DSO it is more than likely comparable to above companies, some of which have had or still have lower market cap than FMS. Where is the upside if target confirmed?

2. Timimg. Lower grade, higher impurity have some demand due to lack of high grade production. Once higher grade prouction ramps up as forcast then capacity constraints alone in the pilbara may rendered these deposits obsolete. production of desired ore forcast to meet demand in a few years so those that get started sooner than later may realise some shreholder value, but even that is speculation.

3. Blending properties. High p% DSO can sometimes be blended with High alumina, low p% to get an acceptable DSO ore. FMS on early results high low grade, high alumina and high phosphorus. needs to be DSO to begin with though. So no indication is has any blending properties on known facts or assumptions so just have to wait for further results, or wisely, all of them.

4. Price/cost. The prices for lower grade and high impurity are far, far lower than the RIO lump 64%fe you may hear in the media. The costs far far higher especially if not DSO and benefication required if not at operations level, then certainly at capex level. The prices are set to decline after next year and costs will go up. So there is a huge question mark over economic viability based on current known facts and assumptions.


Risk aversion.

If results continue to confirm target or continue to have higher levels of impurities then downside risk is acute. There is zero indication of any surprise results, though always a chance like me winning lotto, high, high, high risk. Any speculation of it being a high quality deposit is purely dreamland without one ounce of justification. You need to support price targets with some sort of reality.

This is fine is you have no aversion to risk.

However going by the hysterial reaction and desperate baseless TOU's and insults, lack of knowledge, blame "downrampers" when downramping has not occured based on market cap comparisons nor any support of downramping given, indicate that many are holding a very high risk stock but have very high risk aversion, no exit strategy and no personal responsibility for their decisions.

So very important with the pumping and dumping and possible reduction is losses or some profit recovery one can expect with desperate attempts to get the options exercised that people re-assess their risk profile, do some research (the above stocks are good comparisons for grade and impurities) and decide if they want that risk. If you take on such a high risk then if you lose your only response can be, win some and lose some.

Also read April ASX response by Kevin Wills on MXR on why production targets were way far from reality to assess risk using conceptual targets after an ASX please explain.

Also be aware of delays in results, selective use of results etc as he seemed to have delayed jorc on MXR when it failed to live up to conceptual targets.

So want to gamble fine, but if you lose then don't go crying or blaming others. Don't go making up price predictions based on greed or 1 bt ton targets based on imagination, not fact. Keep your hands of TOU for downramping unless you can prove it as I see supression of negative views as ramping and is reportable to ASIC especially when market cap is far above peers without merit. If you lose cop it in the chin and do not try to influence others to recover your losses.

If you win then well done your extreme high risk taking paid off. However it is pure gambling so do not pretend it is otherwise.

So for those that want to gamble, good luck. For those that get hysterical at being faced with differing points of view, or want to lash and blame anyone that questions baseless ramps then perhaps you are in the wrong game and have too high an aversion to risk to be in this type of stock.

Great traders stock, bet they are laughing all the way to the bank. Make sure it is not your money they are banking.