FMG New Magnetite Project, page-3

They are not diversifying, they are expanding their iron ore production.

There are two types of iron ore: Magnetite & hematite. Magnetite ore has higher iron content than hematite but it must be concentrated & requires more treatment before it can be used to produce steel. End products made from magnetite ore are typically of higher quality than those produced from hematite ore.

Currently most of FMG iron ore exports are of lower grade thus heavily discounted in China, but this new project will provide FMG with 16 mtpa (extra 10% of their current export) of higher grade iron ore . It shows that the management understands the changing landscape of the iron ore market & is actively responding to it.

Those who trashes FMG share price obviously do not know what's going on inside the company, how bright Andrew/Nev/the management & how amazing the culture is. It won't be easy to replace Nev, but I'm sure they will find an equal or even better boss.

This is a company that managed to counter the falling iron ore prices with efficient management resulting in deep cost reductions & even managed to reduce their debt at the same time.

This is a company that get bashed over & over again by speculants, even down to $1.5 less than 2 yrs ago, but still survives & comes back even stronger with healthier finance, ongoing debt reduction program & able to chase growth.

This is a company that pays higher return for mum & dad investors when possible, yes they do care about us, little shrimps, not to mention their generosity towards charity organisations and supporting Aboriginal communities.