noitced received, page-29

Mills may not line up to by it if there is already too much ore being produced.

I may be on totally the wrong track here, but does the release of this announcement indicate an unwanted change of strategy on the part of the company?

Does it perhaps suggest that the track that it was headed down - eg, negotiations with third parties - may have fallen through/ been put on hold?

Might the release of this announcement be a negotiating tactic to bring a TP back to the table?

It's a bit strange otherwise given the context of the discussions on this thread here previously.

My personal view is that despite the high grade of this orebody it is no certainty to be mined in the near-term because of parallel falling steel production in China and rising iron supply.

This imbalance will take some time to resolve itself.

Some of the assumptions in light of recent info used are quite bullish also: ie IO price assumptions for 2012-13 (base case less 30%) and discount rate of 8% in light of increased cost of capital.

For example, talk is now of fall in IO price of 20% for next year alone.

That said, these are recent changes and may have been difficult to factor into model in time for release.

In any case, we all know model would stand up to far more conservative assumptions and I would like to have seen these used to enhance its credibility.

BUSH