terryl..... re: good night

G'day terryl. All of that info is in respect to the central block isn't it?....not the southern block which arh has. Still relevant and good info.

After reading everything available to us, my questions for yourself or anyone who has been following arh are this.....

The southern block will require a US$2.1 billion development capable of mining 42 Mtpa of ore. Of this US$2.1 billion how much can be shared with the central block development. Because if we have to fund it all ourselves, then how are they going to do it?

They mentioned they're negotiating with potential well capitalised partners for the project. But what kind of stake will they want in the project and how much will arh be left to fund?

My main concern is that arh may be diluted a lot more than they have been to date. Especially when Palmer will get 76% of arh, yet isn't capable of offering any funding to get the development up and running.

At the end of the day, if arh only had 400m shares on issue and funding could be organised without massive dilution, then this project is a cash cow for us. Even if we were diluted 100% from here, then its still a great project at todays iron ore prices.

The primary reason I feel the price hasn't taken off more based on recent announcements is firstly the fact that they have to prove up 1 billion tonnes before they get the right to mine it at all.....sounds like confirmation of this might be a month or two away. Secondly the funding issue needs to be clarified.

Hope Darren Hedley makes some comments about this tomorrow on the radio.

I feel good about the long term future of arh, but think that the market just needs a few more answers before the true value will be reflected in the shareprice.

Cheers,
Butcherano.