iron ore update, page-30

blooreeler,

My apologies. I've re-read my post and I was probably vague on my points. I'll elaborate now.

"To facilitate any future exploitation of the iron ore, the
Company believes that practicalities will dictate that the Vale and Avanco resources will have to be mined concurrently."

I guess we can interpret this any way we want. I interpret it that either both get mined, or neither. Obviously some infrastructure will be required, and it seems to me AVB aren't willing (at this stage) to go solo. They're hoping for Vale to proceed with the IO mine, and then utilise the infrastructure for their copper.

There could be a JV, but judging from what has been said in previous announcements), I don't think this will be the case. AVB will be looking for a big boy to carry most of the weight, to minimise dilution to AVB.

My outlook for iron ore in 2 years time is bearish, because I feel supply will outpace demand (even though demand will continue to increase).

I think Vale want this as a backup, in case demand continues to outgrow supply in the long term future.
Vale have little to lose by keeping this option open, but much to gain. $2m over 3 years plus the drilling costs (maybe 2,600m @ $80 per metre = $200k)

If I was an AVB holder, I'd be researching long term iron ore expectations.

That's IMO. Hope I've been clearer this time around.