and the buy up begins, page-20

In late March I posted the following message on the FMG HC FORUM and I have not changed my view of MMX: "MY 2ND CHANCE"

"A few years ago I was seriously contemplating buying FMG at $1.40 but having been badly burnt in earler share trades .coms etc I got cold feet and didn't buy. Next time I looked they were $10 - I thought I missed out, so again I didn't buy and continued to watch from the sidelines as these shares that looked so good went stratispheric.

FMG will make shareholders v v v wealthy and they can expect great dividends from the magnificent profits that will soon be forthcoming.

But I got a 2nd chance. It doesn't come too often. I looked at MMX and thought I had been transported back to the early FMG days. MMX is a carbon copy of FMG. I didn't make the same mistake again. I sold everything I had including shares, the car, caravan and holiday home and I loaded up on MMX shares and oppies at bargain basement prices.

My 2nd chance is now up 350% at $1.90 (23 March) and I aint selling.

MMX will sell 25 million tonnes / year when the rail and port infrastructure are complete in 2010/2011. FMG will be selling 45 million tonnes / year in 2008. They both have about the same number of issued shares. I reckon MMX is about 60% the size of FMG.

I wish I had the nerve to buy FMG at $1.40 and hold on for the long haul. Congratulations to those who did. I won't be letting my 2nd chance get away at least not under $15.

Good luck to all FMGers."

Maybe my $15 is a bit over optimistic but I still think the analysts estimates of about $3.50 on the mmx web site are too low.

PIXIE: The price has actually hit $2.43 a few weeks ago but I expect it to "surge", if you pardon the military term, past that very soon.

TAKEOVER: I dont think so. POSCO has 12% and won't sell because they have a 10million tonne/year contract that will go for 25 years. Management have about 8%. It would have to be a very big offer to dislodge these guys from the best new iron ore miner in the country. I reckon for a t/o to succeed they would have to go to my dream of $15. Not likely.