Ann: Fenix acquires Mid-West haulage business, page-70

You make a very good point. Fenix really should have made you the same offer. Do you have a highly profitable transport business that is intrinsically linked to the company's existing viability and profitability? Oh you don't? Oh well then that is probably why you have not been invited to participate.

Is your winning formula to mine iron ridge for another five years and then die? What a great formula. Do you know why the company focused on C1 cash costs saving in the deal? It is because when (and it is when not if) the iron ore price drops it will be C1 Cash costs that matter in a decision to keep operating or to shut down. The deal is justified on that basis alone!

I have now had time to look at this deal and I think it is good. Also liked the webinar and suggest anyone reading this should watch it as it answers many questions.

Recent decisions are very pleasing:
- invest in iron ore rights and exploration to extend mine life
- hedge the iron ore prices at levels which lock in positive margin
- lower C1 cash costs and increase control over operational logistics

To do so in a way that is EPS and DPS accretive is a massive win for management. And more importantly a massive win for shareholders. Anyone claiming the deal is overpriced or that Fenix has overpaid has obviously not understood what EPS and DPS means. It means that following teh deal every single share (including the shares to be issued) will earn more and be paid a higher dividend. How can that be a bad deal or an overpayment? If the price was too high then the per share metrics would be dilutive not accretive. What surprises me (as it is unusual) is that this deal is "immediately" value accretive. I would expect that, as per most mining services business's if not most businesses', that it would take several years to pay off teh capex prior to value being accretive on a per share basis. That is the smarts behind the structuring of the deal. Many here are bagging Fenix, but I see the opposite. Great deal well structured.

Also, most deals where the buyer has overpaid are justified by "synergy cost savings" or future growth etc etc. Reading the announcement, this deal was justified on a value sense ONLY on the existing reserves at iron ridge. Anything extra is extra value. So if Fenix hauls 1 more tonne than the reserve then the company will be adding extra $$$ to the bottom line explicitly because of this deal. Same with any cost synergies - these are not factored in and there must be some.