re: Ann: 40 Meters at 65% Iron From Second Dr... Yes I think the...

re: Ann: 40 Meters at 65% Iron From Second Dr... Yes I think the general IO market sentiment is affecting the stock somewhat. I'd much rather IO prices be $120p/t+, but I've always run my figures using an IO price of $90-$100p/t so the current malaise isn't too worrying for me. IO was never going to stay at $180p/t with all of the new supply from BHP/RIO/Vale coming online. JW was quoted a while ago in an article as saying that even in the event of IO prices of $90p/t, the operation at Mayoko would still be very profitable. I don't think IO prices will stay this low going into 2013 though, IMO there will be a slight turn around. If the IO price were to fall substantially below that $90p/t level for a sustained period, it would mean that China Inc was subsidising it's domestic production very heavily and there would also be a number of producers around the World under severe pressure, the largest of which would be FMG.

The stock can move up and down quite dramatically on small volumes due to the illiquid nature of the holding, but I guess that's the risk with a stock like this. In the longer term, after a JORC for Mayoko has been released and the company can release some CAPEX/OPEX figures, or even a scoping study, we may see more retail shareholder interest. At the moment we have very strong institutional/director support on the register, which is a good thing because they are the ones who will be in the know, and their holdings will ensure we aren't taken out via a low ball, opportunistic T/O bid.