technical thoughts, page-33

Does sound more to this than just the 24% increase in reserves whilst good was mainly in the Newman area where it is virtually useless to us , at this stage , due to no rail deal.

Possibilities include :

1. Goldsworthy Rail Deal is getting closer to be finalised bringing down the costs of the Pardoo & then the neighbouring GIR ore bodies not to mention the Ridley Deposit.

2. Deals closer to being done on Balla Balla & Ridley though I reckon interested parties will be waiting to see if the MRRT gets through parliament.

3. Funds now recognising that the merger will now put us in the ASX 100 & they have done their sums... which leads me back to jojosydney's sums which are plain & simple

"Here are my technical thoughts

AGO is saying they are making around the $100 per tonnes profit after production cost.

They will be producing by the end of next year 12 million tonnes

12 millions tonnes x $100 gives us $1.2 billion profit after production cost

Give us a PE of say 7 (conservative) and we have a $8 BILLION COMPANY.

divide that by the 800 million share after GIR aquistion

And we get $10 per share.

Iron ore price should stay strong according to the analysts for the next few years to come. "

or lastly

4. All of the above.