The RDI float plans to contain 20 billion tonnes of magnetite...

The RDI float plans to contain 20 billion tonnes of magnetite and raise up to $5 billion Australian dollars.

If you just consider the magnetite that equates to 25 cents Australian per tonne.

The planned merger with ARH places a notional value of $2.20 per share or a total value of $972.4 million and we have the right to mine 1 billion tonnes. That equates to almost $1 Aussie per tonne, not including other assets.

Maybe Clive has told the Chinese or has an informal agreement with them that to get hold of 20 billion tonnes thay must agree to the ARH merger price, however on a stand alone basis $2.20 is starting to look expensive, particularly in the current environment

The Chinese are currently chasing cheaper IO deals, so it will be interesting to see the final offer, should the merger proceed.