Voted No, page-3

I’d like to open by thanking Mat and FMSunited for there work to date and for arranging to have the letter included in the anns/mail out .
There are 11000plus SH and it’s important for them to know they don’t have to follow the board or the report and there are SH who disagree with the option deal.
IMO it is important to read how to vote separately due to some unique requirements. Which ever way one wants to vote imo it should be in a way it will be counted as intended.
The IER doesn’t change anything and it’s not the end for SH we have options(of a different kind).
In the back of my mind and other people were hoping the Deloitte IER would be the “white night” and resolve problems. Not so, they had to explain and evaluate the Option agreement on the table and so far I think they have been objective. (cost $130 000) . I found it better than RTA’s.
In all of these types of documents they have to state the points for and against even if the negative is feeble and obvious.
Re, Todd making another offer, of course. Todd has estimated that they will be spending $165m to buy PIOP. If that were paid upfront it woud be 8-10c per share. It requires them to make the decision re the future of there project and I think they have. so what is left is put another offer on the table. If they want PIOP find the money. The current option makes it very easy for for them. Minimum up front, and minimum royalty which will be covered later.
The IER couldn’t find comparable depositsin Oz and went to SDL in west Africa. I’m familiar with the deposit and they have an Cap ex of 4-5 bn $ coping with jungle, conservation issues, training of employees and an inexperienced Gov’t.
The1 Todd charge for rail was some $20 plus the $5 refundable and 36% of I/O selling price.. That’s in the ball park with FMG offer. No wonder we couldn’t afford it.
I seem to recall the IER refers to Todd continuing with the Balla Balla project and good luck to him.
On the back of an envelope calc. BCI who is mining I/O in WA has been valued in the IER at 5c but is trading at 24c. so. FMS value 15-20c.
The long term price of I/O is stated as $55-77. Todd cost is $46/ton(very high for Pilbara ) So payback for FMS direct takeover and then delisting is very short and attractive.
FMS , I/O deposit is DSO. BCI who have an experienced Board in I/O mining has two of it’s mines uneconomical and the other is being mined below the water table and the ore has to be dried. BCI has recently paid off it’s debt and has $60 m in the bank. Hello BCI.
The Blacksmith deposit is near FMG Solomon Hub or a continuation of it. Solomon Hub has been mentioned in the media as a possible sale for FMG. Share price $1.92/S. Hello Buyer, want some DSO ore?
AO, your pricing of FMS shares 2.5c 2.8c reminds me of pre decimal carrancy.
Hi Frack it’s a shame you didn’t lodge an objection to the board or the deal whilst in Europe. Ellena could have given you some pointers if you needed any and legal costs would have possibly cheaper in Greece.
In summary there has not been any reduction in substantial holdings, The top 20 include brokers and banks and one would hope they didn’t need an IER If they bought when the company floated I understand they are in the red and only those that bought recently are in the black. So a better offer is expected, from whom? Who cares.
All the best to share holders.
My vote is still No. I/4 cent is to low for me.