Copied from Pat Price's post on the FMS...

Copied from Pat Price's post on the FMS thread.

nobullnotOzzie

This post is about BCI not FMS and apologies for that. But you have wronged BCI with arguments that are factually incorrect.

First. You have said "I do not think the BC Iron management is as good as some would have us believe,..." Can you justify that please, otherwise do not say it!

Second. You have got your facts and chronology all wrong. Getting rail access to the FMG system was nothing to do with the Chinese or the IO price and did not happen "last year".
BCI was given rail access by FMG in 2009. From the BCI website " In July 2009, a Memorandum of Understanding (MoU) agreement was signed between BC Iron and Fortescue Metals Group for rail and port access for the Nullagine Project."

Your post should be retracted or moderated. This one too for being about BCI and not FMS.

PatPrice, hi

I think I may not have expressed myself clearly. I meant that BC Iron was able to buy back a stake in itself off FMG as a result of FMG being faced with high debts and a crashing iron ore price (and the latter was due to Chinese destocking which perhaps had something to do with their loathing of the big 4 controlling the iron ore price through their supply dominance. I think the management of BC Iron got lucky there in that FMG had its back to the wall just momentarily then. I do appreciate BC Iron's stellar share price performance as a result of the change of status from explorer to producer - I read the soft marketing literature about BC Iron provided by Hone. The only reason I have not invested in BC Iron is that I think it has done its re-rating, and, as some posters have pointed out here, that its growth opportunities are now constrained by the relatively short mine life of Nullagine - it will have to buy growth with its cash pile now, which is risky if you don't do this sort of thing every day of the week - the Board might overpay, and it might not. I know your Board is saying all the right things about not overpaying for growth, but we will have to see what it actually does. Yes, the management of BC Iron impresses me (for the original decision to give up half its production in exchange for rail and marketing access), but it has also had some luck too, which doubtless some posters here might mistake for brilliant management instead of just above average management (but better than FMS's management). Just my view. Obviously I bought an explorer in the hope that it will do what BC Iron did. I appreciate you have rules about cross promotion, so I can't say any more.