Trading will be unpredictable. One thing is that no matter what...

Trading will be unpredictable. One thing is that no matter what entry point you get at the moment, it is excellent value.

Latest resource (and growing)
3.22 billion tonnes @ 32.3%
Direct Shipping Material(DSO)139Mt average grade 56.6% Fe.

Matters that require further investigation to be incorporated in the BFS
1. Mine optimisation studies
2. Revised layout and location of new processing plant following a change in the location for the planned railway loop. (Expected to make considerable savings)
3. Gravity testwork to support the proposed hematite concentrate circuit.
4. Ongoing water exploration programs in four target areas
5. Evaluation of terms sheets recently received from major gas suppliers
6. Evaluation of options in respect of the proposed integrated waste landform site.

As for OP&R
Budget and engineering work for OPR?s BFS will be completed to bankable standards as originally
scheduled in the current December quarter.

However the delivery of the BFS has been rescheduled into 2nd quarter 2011 because the following won't be completed:
1.Implementation Agreements being negotiated with the State Government
2. Supply Chain Agreement negotiations with foundation customers
Therefore a formal request has been made for an extension to the WA Government under the State Development Agreement

Finance
In accordance with the joint venture arrangements between Mitsubishi and Murchison, Mitsubishi is responsible for managing the arranging of limited recourse project finance required to fund development of both projects. This financing process is well under way, with Mitsubishi and Murchison engaged in detailed discussions with key domestic and international project financiers.


Now, MMX is massively confident this will all be approved and they acknowledge that $380mill has been spent to date, they have made significant progress, Mitsubishi has "name" to organise finance for the project with excellent credit ratings and the BFS will be completed 2nd quarter 2011.

However, Colin Barnett has expressed frustration publicly in regards to the delay. He is frustrated that OP&R has the same ownership structure as Jack Hills and it could be interpreted that he feels that the delay is mainly due to Jack Hills.

Media speculation:
.... "Any prudent business has to have in place alternatives," the source said. "My understanding is that it's being kicked around in China but it's very sensitive. They understand that (there is) an exclusivity period. While OPR has exclusivity at the moment to develop the port and rail, the business needs to look at alternatives."
....only agree to become involved in funding Oakajee in return for effective equity in some of the infrastructure such as berths


6 or so weeks earlier... from Barnett
``The Oakajee project has always been a difficult project because of its complexities,'' Mr Barnett told reporters.
``But this morning Mitsubishi has reassured my office that it has no intention to withdraw from the project and has fully committed to the project.``It's not easy this project but it's worth fighting for and I'm quite determined that we will succeed in this project.``We will push on and I'm absolutely sure Oakajee will proceed.''


So I believe if Barnett approves the extension, the shareprice will open much much higher than it is now. If the Chinese are brought in with equity, I also believe the shareprice will open higher. The market is not liking uncertainty which allows buying at these prices