re: Ann: Chinese Mining Fund Signs MoU for St... The leverage...

re: Ann: Chinese Mining Fund Signs MoU for St... The leverage held by would be producers to extract a sound deal for shareholders is now far greater given current IO prices than last year when CXM did its dud deal with the Chinese.

I also have concerns that IFE will simply duplicate this deal when they go for stage 2 and 3. IFE will not have a lot of cash for a major expansion, and the only factor in its favour will be a higher share price and greater market recognition. The Chinese will certainly expect a similar deal based on their past behaviour.

I agree that IFE is essentially derisked for stage 1 (assuming the Chinese honor the MOU and there is a JORC reserve), but the upside is also much lower.

Baring a GFC2, IFE is worthwhile keeping for its longer term potential unless something else is seen as a potentially faster growing company.

loki