wow - ago buying out frs, page-10

This deal roughly values FRS at 65c/tonne, almost double where we currently sit on a EV/tonne basis. Although you could argue its a bottom of the market deal, this should bode well for our current satellite sale process in terms of providing a somewhat comparable benchmark. Bearing in mind that more significant premiums (i.e above $2/tonne) where paid by AGO for tenements purchased from GIR late last year.

Interesting to note also that Atlas, if combined with FRS, has roughly 56.5m tonnes of port capacity at the to be built South West Creek development at Port Hedland and Utah Point also at Port Hedland. Current production is expected to rise to 42m tonnnes by 2016 by the combined entity. Given the use it or lose it nature of the port capacity at South West Creek, hopefully this also bodes well for a potential infrastructure sharing agreement with Atlas as one option of many in a rapidly consolidating Pilbara.