Ann: Global Iron Ore & Steel Forecast Conference Presentation, page-10

Hi Id;e, they haven't sold it forward (i.e. hedged), they have a life of mine offtake agreement, simply meaning there is a guaranteed buyer for our product. Getting to 63% now is good news. I do wonder though about the purity argument-they say it's really pure, but whenever I look at the quarterlies there is reference to penalties paid for impurities. That would be silica, so I wonder exactly how that pricing works out for all companies?

Unlike Koolan, they did sell the Extension Hill product at a fixed price for life of mine, thus guaranteeing modest profitability in that process. They did say that was the strategy for Shine. It is a pity they didn't strike that deal when the price was high whilst they were building the mine-they had plenty of time to do so, assuming they could have found a willing buyer at that high price. I felt let down by them on that front.