fundamentals consideration

Original numbers were CAPEX-$300 milion to $350million and OPEX would be $35-$40 per metric tonne.

From the PFS released yesterday the CAPEX is now $700million and the OPEX is $74. Start-up not till 2014 (lets say this is the optimistic point of view). partners and Funding is not even sorted out yet. Just looking at other magnetite iron ore players like GBG, GRR, WPG, ARH, MIS (now taken out), CFE (magnetite sold to MCC of China) all the numbers have blown out compared to the numbers of their PFS.

I can now see that the CAPEX is going to be close to $1 billion and the OPEX is $90 or more when the BFS stage is reached.

Tony recently closed the share purchase plan on the 13th May and shares were alloted on the 18th May. This was done from retail holders. Statman posted earlier that there needs to be a clear "PLEASE EXPLAIN". I would re-phrase it to a "BLOODY EXPLAIN MATE".

The PFS has been in the workings for over 5 months. I refuse to believe that these numbers just came out of the blue. I admit that there are always a contigent for a blowout however even at a preliminary stage you are talking about a 100% lowout in both the CAPEX and OPEX together. The BFS (if it comes to this stage) is probably going to blow out again.

If there is evidence that the board knew of the upcoming numbers and still did the SPP (if people still have kept the shares would be >50% in the red).

If people are really angry at whats going on I would suggest you form a independent committee (I know Compass Resources did something like this) and talk to a Slater and Gordon (or another corporate lawyer) to see if you have a case. Talk to these guys whether they operate on a performance line. If you win these guys may take a large percentage but at least you may get something back. Talking amongst Hotcopper allows you to release some anger, concerns or grief however in the end you are still taking a hit in your pocket.

Its usual that speculative companies carries risk which means sometimes we lose the lot. However if there is evidence that management mislead investors (especially the retail investors) then its different.