Three Amigos - Walton, Mentha & Gupta, page-12

From what Ive heard, The Blast Furnace at ARI is in good enough condition to last another 10 years.

The proposed Upgrades were only needed if IO prices of 35 per tonn persisted, as in that case an upgraded furnace wouldve been profitable at the lower margin environment.

But considering IO is at 60 per tonn, and recently at 90 per tonn, the Margin profit is running fine using the existing furnace technology and will be fine for another 10 years.

All of us in the Arrium Shareholders Alliance group ASU, all have significant shareholdings in Arrium.

We all know that we have been ROBBED of our Company that has extensive assets and earnings capability.

Molycop has been sold raising 1.6 Billion, the last cap raise netted 750 million.

Since being in Administration Arrium has traded in an environment with 50% tariffs on imported competing product. The Government has also decided to finally by some steel from Arrium for Government projects.

Arrium has earnt around 500 million since being in Administration and hasnt paid any dividends so that money is within the Company, along with the 1.6 billion from the Molycop sale and also 750 million from the last cap raise.

Arrium is running along with an earnings around 400 million per year currently.

There is 17 million tonns of IO stockpiled worth 700 million on its own.

There is 12 separate Properties owned by Arrium.

If the Company had 2.5 billion debt, then its now reduced alot by the 500 million in earnings, the 1.6 Billion from the Molycop sale and the 750 million from the last cap raise.

2.5B debt minus (500m + 1.6m + 750m) = 350m net cash position.

Also there is 1.8 Billion in tax losses that carry forward with a value of 30% = 540 million in cash value.

So the cash value alone is 890 million.

Plus the 700m worth of Iron ore stockpiled.

Plus the 12 Properties and all the Hard assets.

Arrium can earn 400 million per year in the current climate.

That values the Company at 4.4 billion on a PE of 11 same as Bluescope on a PE of 11.

Making the 2.92 Billion shares worth $1.50c per share at current Valuation.

Us Arrium Shareholders have been ROBBED in broad daylight by the Banks, ASIC, the Government and Korda Mentha.

Most likely because South Australian Government wanted some Power generation for SA from the Blast furnace and that would only happen in an Upgrade of the furnace. So they have all swindled this to farkova shareholders and get power generation in SA for not much outlay by the Government.

Arrium itself dosnt need the upgrade in the current economic climate, the Company is profitable.