Ann: MXR: First Non-Core Asset Sale - Canegrass P, page-19

re: Ann: MXR: First Non-Core Asset Sale - Can... It is understandable to worry about the low grade. It is understandable to question why just FMS buy MXR. It is understandable to ponder the possible more bloods. It is understandable to check its geological data and point at the disadvantages such as "stranded deposit," "no rail," "many hundreds of km" to get IO out. All of these concerns are good start but could we put some logic, history, and future into it plus some philosophic thoughts to get the insight and vision

But looking back and looking back longer enough, if we really want to get some trustable ideas or perception about this 1.7-3.0 BillionT 30% about IO. Don't forget FMS wants to be a IO forces. Don't forget FMG could jump up as the Third IO forces in Australia doesn't depend on the high Fe grade but the reasonable good enough Fe and the huge amount.

Don't forget it is impossible for FMS to get 5billionT IO in 55% fe, since it is simply out of its touch. So once the prefeasibility and all of the ensuing tasks done for the 470mT IO, 270mT exploration IO target, scope work, and so on, it has to decide if FMS should be a IO producer.

The 2.3BillionT IO with 30% fe could be a excellent buying at extremely low(relatively not absolutely) and FMS could hold it without excessive risks until 2011 or 2012 and sell for high as trend player. It also could take it as a reserve resource if it really start very successful at its very initial IO dream.

All of decision need necessary technical details and good enough strategic concerns. It never works to count something penny by penny or weigh in gram by gram. It is the way to kill the dream, the chance, and great future. You could not predict the future but your personal characteristics make the future. I like FMS's characteristic. It could fail but if it has the chances it could fly.