quarterly activities report due, page-14

re: eddie I see the result as neutral. Much of the positives had been priced in and it is quite clear that market sentiment towards management is not great as we'd have been higher all along otherwise. A definite timetable with the dredging is positive, as is the reaffirmation of profit forecasts, but to just leave the market hanging on hedging is stupid.

They're saying: "We stuffed up by not hedging the $AU but we've pulled a few tricks and had some very good luck (iron ore prices) to make sure we still meet our targets" Not very confidence inspiring. What if the iron ore price drops and the $AU appreicates in the next 6 months? No indication given as to how safe those profit projections are. If cashflow is less than expected that may delay development of Mt Gibson on schedule and then everything changes again.

I will be watching closely the next few days and making a decision on whether to keep holding at all. I get a feeling (although it appears a fundamental bargain) unless there is a takeover on the cards that I can find better opportunities elsewhere.

Ed.