Ann: Joint Venture discussions with Arrium for iron ore sale, page-25

Years ago there was talk of $80 costs (cant remember whether that was for landed in china), but then there was work to reduce them.

Some of that cost reduction was to reduce the trans-shipping distance, changes to the port etc (dust suppression) etc.

The company still believed it could make a profit at $90 per tone and AUD/$ parity, but that was before the grade discounting widened as much as it has recently. This is why the first year is scaled back to half the tonnage, but improved grade.

All we can assume is that operating costs without port, and trans-shipping must be less (since we know that barges/cranes were going to be leased, as well as less capital costs to get started) , and that there will be enough money to get up and going.

There isn't really much transparency around, and we've never seen an updated BFS beyond something totally out of date many years ago.

We just have to trust that its in their own interests to do the best they can, and that all the various
plans and reworks will come to fruition at some point.

I think the only time we will see any numbers will be in a financial report after some type of ore is actually sold.

For now I still think its just a wait and see, but as i said before I'm more optimistic than the last few months, this still seems like a great initiative, so hope it goes through.