re: Ann: MXR: First Non-Core Asset Sale - Can... Is it good...

re: Ann: MXR: First Non-Core Asset Sale - Can... Is it good deal? I do feel it is not too bad.

Based on my understanding of the IO demand in the future, especially if BRIC could continue their industrialization, if FMS could sell its BID for its base, later sell its CID, and take 1.7-3billionT IO as future IO reserve, this $1.3million means nothing.

In Perth, if you have 4 of houses and each houses has the land about 700sqrMeter, you would have the asset worth this amount of money. Do you read the newspaper about a huge IO mine, about 1.5billionT, with Fe 26%, has been discovered in China more than 1000 meter from the ground.

What was the grade for a accepted IO mine in 1950? What was in 1975 and 2000? What will be in 2025 or 2050? Yes a lot of mates might be gone before 2050 but this deal shows FMS is very serious about its IO business.

What will make the big boys are interested in FMS IO? The strategic views and the imagined long term prospective. Now the resource has still not recovered but...

FMS is playing the risks with $1.3million but if the IO water could be up to the level above $100, the reward would be very good. The key is if you feel IO and the BIRC industrialization would be died.

Personally I like this deal and feel it is good buying at the bottom. If everyone cheers for this buying, I would be alerted.