leg has all its eggs in west africa, page-7

IT seems Ignorance is bliss, our friend Wescott bagged LEG for so long, it seems others don’t seem to understand what they are investing in either. Maybe Westcott and others could look at OneSteel and understand how the process works. The fact is they don’t dig up 65%+ feed stock, no they dig up low and mid grade, they blend it, run it through ore beneficiary, then the concentrator and surprise surprise, it comes out ready for making pellet for the blast Furness process in Whyalla in SA, and more so, the same concentrate gets shipped to China and elsewhere which is actually what keeps OneSteel afloat, not making steel.

Now the blend bebate come up on the SDL website also about a year ago, as to why would SDL want to be involved with LEG, then not more than a few months latter LEG and SDL start to make some agreements, why, becuase if you have a contract to supply a certain grade and you only have high grade, you either give the high grade away or you blend it to reduce the % to meet client specs, now equally why would you rail have a wagon of low grade when you can blend 500-700km down the road at an alliance or take over target..... Mmmm interstings.

That aside, LEG dont need SDL or anyone else, the wonderful tecnollogy of concentrating the product will turn out high grade concentrate for sale a lot cheaper than SDL can, you see the 300-500 million in total to get LEG off the ground, all be it with higher operating costs becuase of electicity use, will still come back cheaper than a 4-6 billion investment for SDL to turn out the same grade when it hits the port.

And right now we can by 18/1 LEG verse SDL shares and yet the set up costs are lower, the price will be the same at port, the operating costs will be higher but the capital payback and interest will over all make SDL a dearer proposition. So you can pay 42c for the operator who will get less margin or 2.5c....

Mmm I will stick to my LEG, oh and the mgt of LEG have not consistently told bull to the market for the last three to five years