Ann: Quarterly Activities Report, page-7

I never thought a merger with GRR was even on the radar. The reality is that magnetite concentration is a loser in Australia. It is too energy and labour intensive to make any money unless those costs come down considerably. The likes of Karrara and Sino Project show that conclusively (not that either have been well designed or managed). Savage R has huge issues - not the least caused by its age. Old equipment and increasing strip ratios make this a failing proposition.

I keep a weather eye on wannabe magnetite concentrate producers such as Iron Road, Carpentaria, and Magnetite Mines (whatever happened to Rutila's Balla Balla?!) Unless they radically change their operational model, they're dreaming. None of these companies have the vision or expertise to make the necessary changes. Even companies like Gindalbie-Anshan and CITIC, that have existing operations, haven't the vision to evolve.