Ann: Investor Update March 2012 , page-9

You make some really good points there Hotrock - great post!

I remind myself of this line quite often when investing in resource stocks: mining isn't as simple as punching a few numbers on a calculator. In other words, there is far more to a project than the production itself.

Regardless of the fact that some of us here may have a connection to the industry outside the stock market, often it is easier and more appealing to look at the numbers in a presentation or an announcement and just take all of the fancy proposals as a 'given'. In reality, infrastructure, environmental and social logistics play a HUGE role and is far more challenging to perfect than companies lead us on to believe in their spruiced up announcements.

Having said this, CAP are continuing to look into transport options so that they aren't left banking on Port Pirie alone in order to get Hawsons up to 20MTpa.

Other options discussed by CAP and others include:

Port Bonython - Hotrock touched on this with Iron Clad.

"Port Bonython creeps closer on study announcement" - 25 Aug 2011
"Govt out of touch with reality:?Mayor" - 13 Feb 2012
"Port Bonython gets major project status" - 01 Mar 2012

Myponie Point - attracted some major interest about 10yrs ago, but other points in the Gulf have since come to the fore.

Port Kembla - has been mentioned a few times by CAP, but it would mean both a massive expansion of the facility with 12MTpa of the 15MTpa being used presently, and railing 1200km which would dramatically kick up the OPEX.

Ultimately, the best solution to all of this would be if ASI are as dead keen on JVing with CAP as they were in kicking out BMG, because if they are then they could indeed be the "massive, cashed up gorilla ready to re-invent Port Pirie". A re-route and upgrade of the rail to take care of the community and an expansion of the port - our best solution in my opinion.