debt per share and cash on hand, page-20

Company were in the process of a further $2 billion capital rollout....funded from their own surplus CASH flow.

Sure the extent of this capital spend has since been reduced.....but the point is, why today do we have such as issue with the company saying they want to conserve cash. They are still in development stage....sorry but if you want to export 80MTPA of iron ore, you need to outlay lots of capital.

See below:

---------------------------------------

Fortescue plans $2b expansion in Pilbara
Jamie Freed
September 20, 2008

FORTESCUE METALS has not yet turned a profit, but the iron ore miner is confident its cash flows are so strong it can fund an expansion project costing up to $2 billion solely from internal sources by the end of next year
--------------------------------------


They still have capital committements of hundreds of millions for the second port at Port Anderson....thus prudent to conserve cash...nothing to do with operational performance.

That Sept quarter (where one poster today said they had negative cash flow - ah maybe a completed Port Anderson can be washed up on the next high tide).....in fact FMG reported $350m profit on 8MT, but that was on a US$0.87 cross....aussie has weaken to 68 cents, which means an extra 30% revenue kicks straight to bottom line. Company is still promising increased production this quarter.

A reduction in 1st April 2009 iron ore pricing of say 35%, would still only return sales revenues back to July levels of this year when the aussie dollar was 95 cents.....also when BHP was sailing alone at $50.