looks like ady will win the $83 million, page-34

Sungar,

You say:
"Most likely they have a very good case for a LOT of damages"

Quote from todays announcement:

"The existing and legally binding contracts between Vallenar Iron and Besalco require the latter party to produce 6,500,000 tonnes of iron fines within a sixty five month period commencing in February 2007. To date, Besalco. has produced 486,615 tonnes of iron fines and if Besalco does not increase its current year 2008 monthly average production of 23,172 tonnes of iron fines per month, it is estimated that it will take 23.4 years for Besalco to meet its contractual obligation to achieve the target of 6,500,000 tonnes of iron fines."


My opinion is that if the above quote is also an exact extract from the terms of the contract ie "produce 6,500,000 tonnes of iron fines within a sixty five month period commencing in February 2007" then ADY does not have a very good case at all. Hopefully the above quote is just a summary for the benefit of shareholders. In my opinion, relying on the above quote, Besalco will only be in breach of the contract if by June 2012 they have not produced 6,500,000 tonnes of iron fines. The fact that Besalco has only produced 486,615 tonnes of iron fines todate does not appear to be a breach of contract.

However, I think ADY has a good case for argueing that the original contract be interpreted, for the future, through arbitration, for Besalco to produce at the rate of 100,000 tonnes per month. Therefore, I would hopefull of a favourable outcome from arbitration as far as future production goes. Thats my 20 cents worth anyway.

Regards

SP