comments on fms

I a not surprised that we are not one of the FMG favourites to get onto FMG's rail. Saw Nev Power,MD FMG interview on Sky business when the rail selloff arose and he basically said not interested in other ill-look liquid parties getting on to the rail. IE If you dont have money your wasting your time and thus Brockmann and Flinders miss out on round 1. Atlas has cash and looks to be the favorite one.

It also fits nicely with the capacity of the rail line.
In a past presentation FMG said it was 180 mtpa but with few more crossover points could be stretched to 200mtpa.
After FMG's 155mtpa this leaves 45mtpa spare and AGO have plans for 47 mtpa by 2017. Fits togeter nicely.

If brockmann come on with 20mtpa and flinders 15 mtpa then their is going to be a lot of expense involve as the existing line will be at capacity with Atlas. Maybe this is where Aurizon could help out. Wonder what the chance is off them getting 40% of fmg rail and then also duplicating the line.

At the WA GOVT appeal process FMG are going to use the no money issue as one off their bargaining chips. Interesting wait on the umpires decision.

FMS board have now woken up that to get any chinese/other participation (JV or T/O) they need to get capital and mining costs down and BID ore will do this. Hence the recent annc. to drill BID recently found. But I wonder how smart our Board is or if any of them are strategic thinkers, because we found BID ore in 2008 and its only 5 years later we chase it because it puts us on the road to attracting a J/V or T.O

Years lost but thats fine as they are got their fees. Time for some board changes and getting a smart MD.

Hold in super and i want this onto poduction so get rerated. Look at BCI.


Holding FMS AGO CXM