Ann: Release of Bucephalus document, page-141

I don’t think BHP is the best example to use here though. Mining companies are very cyclical and dependent on the ore price. The price of iron ore will continue to rise and fall with demand and the share price of bhp will follow. The questions with rff as I see it are as follows: (1) are they inflating valuations and (2) are they really banking routine maintenance as improvements to lift value. The answer to (1) is difficult to know but they are certainly incentivised to do so and it is notable that this has happened year on year. With respect to (2) If they are, and reading there own published accounts it does actually appear they actually are doing this (routine works to lift value), then that is concerning. It may be that it isn’t ‘illegal’ but it’s misleading. I doubt this is standard farming practice but I am happy to be corrected. If the banks haven’t noticed this and they disagree, then they will be at risk of breaking their covenants- and this is where the real risk now lies with this stock.