how low will it go?, page-15

Hi Boydie,

There are a few reasons for my decision - some based on hard fact, others on gut-feeling - here are some.

Years ago Chelks predicted a high of $4.50 and that has been my target all this time.

35c dividend x 7 year mine life = $2.45
(VERY simplistic and I know the 35c isn't based on the actual profit but it still gives you a indication how high the SP has risen)

Gina Rinehart,s Roy Hill (55Mt per year) and BHP/RIO/FMG expansions are expected to come on stream in the near future - who is going to buy all the IO & at what price?

My financial adviser (wife!!) has been bugging me to look for a more conservative investment as we are recently retired.

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Having said all that, I see no reason for BCI not going over $6 and dividends increasing every year - especially once they work out how much low-grade IO they can process to increase the minelife (by a possible 5-7 years?)

And who knows, if the SP drops in the future, I could easily be back to my favourite stock :-))