Ann: Change in substantial holding from TRF , page-7

BBB, I think you express the worst fears of all holders. The exercise of the options is almost certainly a major component of IFE's funding to production and it is looking possible that delays may jeopardise that happening. Bizzarley, if the company were to announce full external funding of all production costs that would trigger the exercise of all options - when the funds are no longer needed ! But I want to get back to fundamentals rather than focussing on guess work and short-term issues. BBB, as a major holder, what is it that you doubt about the ability of the company to generate profits of $50m in Yr 1 and $100m in Yrs 2-4 ? These projections are based on average Fe ore prices of $140/t (which most pundits seem to think is realistic) and $85/t production and shipping costs (which is harder to evaluate given the floating port option but is nearly double what other iron ore producers achieve). Every time I get the jitters I go back to those numbers and feel reassured. I have not seen anyone seriously question those figures and they have been looked at by many analysts who should have a pretty good idea. If the projections are accurate IFE should have a MC easily above $300m. But if there are doubts in your mind I am concerned; do you have any specific areas of doubt (other than whether or not the oppies will be exercised)?