Confidence Badly Shaken, page-20

This is not about the merger. It is and always has been a play on the IO price and the $A, both of which are making life hard for Aussie iron ore miners. Have a look at the Dalian IO futures on the link below.

http://www.dce.com.cn/portal/cate?cid=1114494099100

If this is an indication of where the IO price is headed then I have no idea why anyone would be either holding or buying iron ore stocks. BHP & RIO have been very clever the way they have hidden the iron price effects in their recent announcements.

If IO was trading at $1.50 then BCI would still be above $5 and maybe approaching $6 given the proposed deal with IOH. There is nothiing wrong with BCI except for the IO price and the currency. Management are great - just being influenced by factors outside of their control - they are "price takers".

I was in BCI from 2007 until earlier this year. It is sad to watch this happen.