anything for shareholders, page-19

We had a massive discussion when this was announced- IMHO the spin off is positive because it means that FMS is effectively doing a non-core asset sale of its diamond business by selling out of 50% of it. This lets you get investment into the diamond business without diverting capital from its main game- the IO business where all the value is. Some people were comparing the value of FMS when it was a diamond business to what it is now as an iron ore play nearing production.

We have just gone through a RI with the hangover in the SP that brings- what would we think if they did another one to support the diamond business? And do we really want FMS to spend some $10m of the recent RI money on the diamond side of business? I certainly dont. I want them to prove up resources as quickly as possible and to focus on getting to producer stage with minimal shares issuer or little or no debt. And what do current FMS shareholders get out of it? $10m in fresh capital. Doing all this through an IPO and then that entity farming into the prospects seems smart to me. Waiting for the independent report but im voting yes.