Need to consider the following projects coming online over the...

Need to consider the following projects coming online over the next 2 years. Plus Vale's expansion projects.

* - BHP Billitons Rapid Growth Project 4 (22Mt) which was completed late last year.
* - Rio Tintos Mesa A (25Mt) and Hamersley Iron Brockman 4 (22Mt).
* - CITIC Pacifics Sino Iron project (28Mt).
* - Fortescue Metals Groups Christmas Creek project (16Mt).
* - BHP Billitons Rapid Growth Project 5 (45Mt).

Whilst we should see IO rise strongly this year, the outlook for 2012 an onwards can't be so positive.

For these reasons I see AGO as fully valued, and the continual use of scrip to takeover competitors confirms this (why issue plenty more scrip unless you have to or your fully/over valued).