slow downward drift, page-10

Matt did have a read online when it came out. Not surprisingly Alwyns comments mirrored what a lot of what we have been saying and what brokers and the company has already reported i.e. the options are there and the Pilbara is going through an exciting consolidation and development stage. He even mentions BHP and port access which was somewhat new, but it was more a case of who didnt Alwyn mention.

I think to date part of the strategy has been to see how the picture develops, esp with Anketell, and agree that we dont want to get in bed with the wrong party or commit to a low ball offer. But IOH could add a lot of value not just in terms of capital but also an economies of scale resoruce like we have been saying for so long. We know through the press that we have received offers already for our main pillar deposits and that we have been talking to a lot of people.

Relevant excerpt from the CEOs address which is a good summary of whats been happening in the region and where we can fit in.

"Access to infrastructure being a major consideration for junior iron-ore companies, it is pleasing to note recent advancements in infrastructure development in the Pilbara. In particular, BHP Billiton appears increasingly committed to significant capital investment to develop the outer harbour at Port Hedland. This development could ultimately result in new capacity for smaller producers becoming available at a separate facility in the outer harbour. In the West Pilbara, both Aquila Resources and FMG are
finalising studies for the development of the Anketell port. This port will transform and unlock West Pilbara infrastructure where the majority of IOH’s future projects are located. IOH is therefore actively engaging the State and other industry participants to ensure we can secure port capacity at this future port.

Earlier in the year, FMG announced the discovery of a 1 billion tonne maiden resource at its Nyidinghu Project, immediately bordering IOH’s Iron Valley deposit. Subject to FMG developing Nyidinghu in the near-term, this could provide further optionality to the Iron Valley deposit. More recently, Australian Premium Iron JV (API) announced a maiden resource at their Buckland Hills
projects, which is contiguous with IOH’s Bungaroo South project and combine to contain a ~450Mt resource. Joint development of these resources will offer major technical and commercial benefits to both parties.
There has also been a range of interesting corporate developments, with a number of our industry peers being involved in takeover and consolidation activity, most notably Atlas Iron, FerrAus, Brockman, and BC Iron. IOH is engaging all these parties and continue to consider impacts and opportunities from these corporate developments."

and

"It is my belief that we are on the cusp of unlocking significant value for our iron ore assets in the Pilbara and we are dedicated to accomplishing value-accretive transactions in the near-term. IOH ended the FY2011 period with $42 million in the bank and zero debt. The strength of our cash position post the Rio Tinto transaction ($70 million) will stand us in good stead for further
development of our company."