Ann: Statement of Claim Lodged , page-28

Hi KG and M10,

Good to hear from you both.

I suspect that the rise in Copper could be due to the O Dam problem that could limit supply and Copper stocks on the LME are still only 340,000t (not a huge amount).

S P rise is probably due to Copper going up, positive sentiment, a realisation that P Hill cash flow is very large (Cal 2010 - $603m Aud at 3.30/lb usd copper and 87c exchange rate and 100,000t of salable copper).

There is a growing realsiation that dividends or significant share buybacks will need to occur to soak up the cash. (we do not want m & a). Dividends are unfranked, so a lot of thought is on share buyback.

Annoyed as you are re the cash in USD. I have expressed my concern to investor relations. We just need to not be quiet over this one.

(Mind you, BHP is of the opinion that there could be a double dip in commodity prices, whiuch could see the dollar fall like last Oct, before rising again)

HT1