FEX Valuation, page-7

Thanks gents appreciate the feedback. Agreed that it's highly dependent on where the IO price heads, and that FEX will never be valued in the same way as FMG, hence FMG trading on a P/E of closer to 10x vs FEX assumed P/E of 1.5x in the model due to its fixed 8 year LOM. 80c by Christmas definitely feels reasonable to me if the IO price is at or above US$200/t by then.

Some other FEX developments I'm looking forward to in the coming quarters:

• Capital Allocation Policy including dividends and franking credits - this should attract a new type of investor to the register.
• Hedging Policy - to improve the certainty of cashflows moving forward and preserve profitability.
• Exploration Upside from SCN JV - to improve the production profile and extend the LOM.

Does anyone have any insights on whether it is reasonably possibly for FEX to accelerate production beyond the additional 10% flagged in the Quarterly? Would capacity constraints / significant capital outlays rule this out as an option going forward?

Cheers,
L