reply, page-12

I thought I would post the following email train, with my own identifiers removed, of course because I'm a wimp! That said, it is worth posting in full because I wish that sometimes, instead of just sniping from hotcopper, posters would just email Tony and ask him their questions ... he actually does come back with answers within a reasonable period of time.......


From: Tony Schoer
Sent: Friday, 5 August 2011 1:39 PM
To: XXX
Subject: RE: Quarterly


Hi XXX, of course we didn't know it when we did the MOU. We only decided on making a preconcentrate rather than full concentrate late in the PFS exercise. We had to model both cases and also look at the environmental consequences of both as well.

If we needed to do a JV with an end user the JTC would have been the preferred partner. If we needed to do a JV with a beneficiation partner then Timeone would have been the preferred partner.

We went with Timeone for good reasons. If we went with the JTC who was going to beneficiate our ore in Asia?

There are plenty of end users in Asia, not as many beneficiators with plants at the biggest iron ore import port in China.

People should look at it as 70% of a project that now will have product produced next to market versus 100% an island in the middle of nowhere without the opportunity to make a final product. In addition to that the funding for the project now seems assured. What the JV partner gets for that in terms of percentage of the JV is what we have to negotiate in the next few months.

The big advantage to them being a major shareholder is that their interests are now aligned with shareholders.

A no-brainer I would have though. Sure I would liked to have gotten more than 35.5 cents a share but that is not the market we are in. If I said we would get 35.5 cents at today's price of 24 maybe there wouldn't be so many knockers.

We are concentrating on the end game, I cannot allow myself to concentrate on short term prices.

I can understand people who participated in the SPP being unhappy (as all the Board members did too) however I would have thought those shares would look fairly cheap when we get to mining. That's in my opinion however I understand others have a different opinion.


Cheers, Tony.


Tony Schoer

Managing Director and CEO

Pluton Resources Limited

phone: +61 3 9867 8283

fax: +61 3 9867 8587

mob: 0411 232 711


From: XXX
Sent: Friday, 5 August 2011 9:59 AM
To: Tony Schoer
Subject: Re: Quarterly

Further to yesterday, it would be be great if you could come out on BRR, "swinging"!

I note on HC the comment :"The issue both parties had was that they can't beneficiate. They would have to rely on the Chinese Govt continuing to allow the export of high quality iron to be exported from China to Japan. That does happen now but who is to say they will allow it in the future?"

Should this be an accurate representation, further comment on what has changed since last year may be appropriate as the question has been asked "surely this would have been known before the mou (ie implication that this is just "spin".)

Good luck. It annoys me that the focus is currently on the 30% dilution but not on the value that has been created. I think some lucky punters are going to get some real bargains today!