Ann: Direct Shipping Magnetite Resource , page-10

If the first stage goes from a 3 year project to a 5 year project, the 35 million funded and amortised by contractors could be amortised over a longer period. This has the potential to reduce the annualised cost estimate and associated margins, but of course we wont really know the true details till the feasibility study is released. We should also note (as reported in today's fin review) that SA has plans to increase royalties payable on iron ore. So we win some, we lose some.

Recent announcements are reducing project risk which is great progress in my view.

I guess the federal tax uncertainty is also a mixed blessing as it scared away the Chinese MOU and the potential giving away of half the first stage project. Gather there will be another capital raising in future to fund the gap but no doubt the investment case will be more compelling than it already is at that time.