robert mencel onstage sydney wednesday 15 may, page-11

I also attended the conference in Sydney and met with Ian and Robert. And the comments made by Thadius were consistent with my conversations.

According to Ian & Robert, there are two primary hurdles in the near term:

1) Approval from the state government for the modified port operations.-

This is expected within the next few weeks. In fact, it was expected well before now but perhaps the State Government is being extra cautious given the issues currently manifesting in NSW regarding mining approvals.

and

2) Finance arrangements -

Finance options are being discussed with potential buyers in Asia. Rob has just returned from there and will be resuming negotiations in China next month.

Assuming and hoping both these hurdles are crossed by mid year, then work will commence on developing the port, acquiring the containers, floating crane, barges, etc. Barring any major setback, they should commence exporting before the end of the year.

Ultimate ongoing success of the project will be dependent on the price of IO as the landed cost in China for IFE will range between $80 to $95 per MT. Many of the other presenters made the points that demand for IO in China and the rest of the world will not stop . . . perhaps slow down a little . . but then continue to rise.

There were opportunities for reducing costs further which would be exploited by the team.

I asked Rob about the cash position and the need for a capital raising. He said that there was sufficient cash to keep going for some time and that there was no plan for a CR.

I feel reasonably comfortable with my investment in IFE/TRF after talking with Ian/Rob. However, I have not forgotten past disappointments and missed targets. And I am still very much under water like everyone else.

Time will tell. After all . . . this is a speculative investment.