please no scrip bid from bck next week, page-8

Hussy,
A deal with Rio would extend the working life of Rios's railway surely, and thus improve the returns on it?

Buying us would not be comparable to buying Alcan or Riversdale (they were high cost acquisitions compared with buying us). With the BID (Brockman Iron Deposit?) type of ore as a starter (low strip ratio and no beneficiation required i.e. a DSO operation is possible with this type of ore) the initial capex required e.g. for a stepped development might not be more than $500m. If Rio took us out at 15 cents a share, the whole cost shouldn't be much more than $800m to get the PIOP to being cash flow positive. Also Rio would be dealing with authorities it already has experience of dealing with (not as risky as dealing with Mozambique as in the case of the Riversdale acquisition?).