Hi All,I am very happy with 70/30 outcome for debt/ equity. I...

Hi All,

I am very happy with 70/30 outcome for debt/ equity. I think it is much better than a lot of analyst has predicted. From memory some of the broker reports indicated 50 - 70% equity component in coming up with SDL valuation.

However what surprises me is that SDL chooses to increase CAPEX by 20% to further developed its new high grade haemetite resources at the expense of a possible further dilution in its share price. Unless it has reasonable believe that it will not adversely affect the dilution of its shareholders. The only explanation for this is that SDL has included payment of the $1B capital injection by a combination of shares and future delivery of high grade hematite which are very attractive to steel mill around the world.