q4 report, page-7

rocket, vicx

In addition to those comments the map of proposed developments at Corunna includes a new concept that we hand't seen before ... a rail loop near Corunna to a regional "processing hub" and a transport link .. which I take to mean that they might truck from McPhee Creek to this hub. Makes sense if they see the big tonnes coming from Corunna ... which could be "topped up" by McPhee by road rather than having to build rail that far.

Plenty in there really about progress with rail and also partnering on mine development which they state is dependent on infrastructure solutions.

Does the fact that they say the about the blending hub at Corunna "the provision of a regional blending capability' which appears to be a combined product value enhancer that is unlikely to be achievable at Port Hedland for the
currently envisaged rail solutions" give anyone any clues about which port and rail solution is looking likely .. i.e. are such blending facilities available at FMG's port facility and not BHP's or Roy Hill's proposed developments?

What might affect the market's response today is the EBITDA which has come down from around $100m last quarter to $60m this quarter after the lower IO pricing. Need to remember of course that this is after yet another $102m spent on developments (cash has remained the same). Cap ex for HI will decline rapidly second half of the year ... so looking beyond the current quarter profitability looks really good ... even at these lower IO prices IMHO.

H