egm announcement, page-9

Gidday d_giff,

Fair enough Buddy. I just get the feeling buy the way BCI Management went about the Capital Raising that it was for something other then a fund shortfall. I've just found the time to read the recent announcements and this is my current way of thinking. HengHou Industries will excercise there options and the Funds received - $11.1M will be used for any fund shortfall and/or a future M&A. But I'm afraid I'm a bit like a Dog with a bone regarding the recent CR. My hunch is still that those funds will be mostly/partly used for a future M&A.

Re: M&A. If BCI decides to buy in Australia and not in Africa. Then BCI will 100% buy in partnership with FMG, probably a 50-50. BCI wishes to take a Explorer into Production. So BCI WILL use FMG Infrustructure. So I'm figuring the $18M won't be total lump sum. Since BCI will only need to provide half the funds. It may not be an all scrib bid either. Any Co. who's current Market Cap. is under AUD$50M should be in BCI/FMG Managements sights I reckon. Provided of course it's a BCI/FMG JV.

Two further notes. When BCI originally mentioned the M&A in a Company update back in Feb.(memory). They strongly hinted that HengHou will be the Financial Partner for BCI's future M&A. However in the lastest update, HengHou was replaced by the word Stakeholders. Does this mean Regent or simular now?

Also for those who aren't aware. Capex was provided by HengHou Industries - USD$50M. The first repayment of that Interest free loan, doesn't occur for another 12 months. So any money the NJV receives from the 68Kt stockpile is the NJV's to keep. Also to note. The stockpile has a Fe content of 57%Fe. It appears that BCI or FMG has found a buyer for the Grade down to 55%Fe. This is currently waste. But since it has a LOI of 12.1%. After sintering the CaFe content of the 55-57%Fe is infact higher then AGO's current DSO. Not trying downramp AGO's DSO, more showing that it is still of a fine quality. Since it also contains a Phosphorous reading of 0.016%. Then it's no surprise that the NJV has been able to sell the 55-57% blended Fe ore as well. So the real Kt amount sitting at Bonnie Creek is probably much higher then the present 68Kt.

The NJV receives 95% of payment when the ship is loaded. The NJV should see first payment then within 6 weeks, touch wood. This must help BCI meet it's Financial commitments, since 6 weeks (touch wood) isn't that far away. I know it's only being moved by Triples. But still, at $150 a tonne there's some money sitting in that Stockpile. I reckon weather is going to play a big role in the next couple of months. I believe the area is current in Drought. Without trying to Selfishly wish misfortune on people who are currently praying for Rain in the area. I'm hoping the Drought will continue for a little while yet. Sorry Graziers. At least NO early Cyclone please. This is all my opinion. I guess there are so many different scenarios, it's most likely my opinion will be wrong. Especially if you know something I don't.

Bye mate.