attention - no more debt concerns ...!

The deal struck (very cleverly) by Mr. Forrester this week with Valin;
1. Provides for all immediately foreseeable capital requirements.
2. Provides very much improved access to Chinese funding markets.
3. Proves that the Chinese demand for iron ore will at least be maintained.

In my opinion there are 2 possible reasons (or a combination of the 2) that additional capital was not raised;

1. Some clever little pr!@k from Harbinger leaked to one of his insto mates that they were selling to Valin for $2.28. This "got out" and then became the price the instos were prepared to pay. And Mr. Forrester was not prepared to dilute equity at this level.

2. It was never really needed at the expense of dilution with the share price at this level - and the only reason the institutions were involved at all (after the Valin deal was done) was so the Government was appeased and could not object to the increased stake of the Chinese (a much more diplomatic approach than that taken by RIO).


I am usually the first person to stick up my hand to argue about Australian made. Or to argue to keep foreign investors from owning too much of our country.

There is one good reason why I do not have a problem with foreign (Chinese) ownership of our mineral assets in this instance.

Australia doesn't deserve to keep ownership of FMG. Every institution talks it down at every chance. Particularly Macquarie (who would kill for the potential of increased income that FMG are looking forward to).

This is a start up miner - our third largest - that will become cash-flow positive from proceeds of production THIS YEAR.

I look forward to the "insto's" comments in 3-5 year's time - when the FMG is;
1. producing 120mt per year
2. has further expansion plans being discussed
3. is trading at $15 p/s .

They will probably STILL be reporting as though it is about to go into liquidation ...

Especially Macquarie.

If they are still around ...