even the big boys get it wrong

I always find it interesting when you look back at articles when it was all doom and gloom. June 2008 was a particularly interesting time and I have scanned an article for you all to read, you will all have a chuckle about particular sections, but take careful note of the capital raising prices.

I remember about 8 or 9 years ago, Kerry Packer was slowly building a presence on the Iluka register, betting that sand was going to turn around mainly because of the gross inadequacy of $$$$ into exploration by everyone, except Iluka and also the possible takeover from Normandy.

Well, the takeoever never eventuated, but Big Kerry stayed on. With his passing, James took over and grew tired and sold out to some of the overseas insto's. Most of those insto's are still on the register today.

"The Australian" 8th June 2008

David Robb stated back then it's going to take some time, he said JA was going to be huge, prices would increase and no one is putting exploration dollars into the ground except his team, but he just needed time.

This article highlights three very important points to me.

1. The big boys get their fingers burnt all the time and they just couldn't see Iluka's vision.
2. Don't think like they the big boys, look at market dynamics and a long term view.
3. Big Kerry was proven right - again.

As for Iluka today.
David Robb told everyone at the AGM "this is only the beginning of the Iluka story" and I agree with that. Sand prices will continue to move up not down, and it's all from a plan they had 4 or 5 years ago.

Where will they be in another 4 years?
Well, there isn't a serious mine anywhere in the world and they continue to pour huge money into exploration, they have no debt and the cash register can't hold any more money. So I would be guessing a lot higher than $12.

Pep