My earlier post was moderated so I have revised it a little. If...

My earlier post was moderated so I have revised it a little. If you gave the original a like I hope you will this one also.

This is all my opinion only. It is not advice.

When I think about it, what FMS / Todd Corporation has done is extremely clever but ultimately it could be a risky move for Todd Corporation. Whether the delisting is successful or not, Todd will end up being short of the 90% needed to compulsorily acquire the rest and have to work with a particularly irate and hostile shareholder group that could ultimately cause a $6 Billion project to fail. All for the sake of saving a few dollars on buying out a 1.4+ Billion tonne Iron Ore resource (plus the bonus of the other minerals and a tax write off). According to the buyback offer this is apparently worth no more than $0.075 cents per share and could be a great deal less depending on share trades.

If the Todd Corporation cannot get to the 90% before needing to go back to the WA Government showing they have the iron ore - they could be in big trouble. My understanding is that because Todd is a related party, it has no vote in deals between FMS and Todd Corporation.

I remember the $65 Million offer by Todd for PIOP (with a royalty of between $0.60 and $1.40 per tonne mined depending on IO price ) made on 11 May 2015 which was rejected by 79% of FMS holders able to vote. Todd Corporation needed 50% + 1 vote then but only achieved 21%.

I have asked myself what is different this time round - well the resource has increased, the price of Iron Ore has gone up (circa US $52 per tonne Apri 2005), WA is getting its act together with railway access (possibly other rail solutions available?) and the tax write off value of FMS would have increased (although I suspect it may not have been available at all in that offer as it was buying only the project).

My rough estimate based on Iron Ore in the ground per shares on issue at the $0.075 maximum buy-back price is less than $0.17 per tonne. No $65 Million sweetener, nothing for IO price rise or Canegrass or the tax credits. If the buyback price ends up being less because of a lower weighted average price - it is even less per tonne being offered.

Scale wise, the WA legislation requires rail with a minimum capacity of 25 Million Tonnes per annum from FMS mining leases for 20 years and if this was done it would only deplete just over one third of the resource. Who knows what more drilling would uncover? My reading is that it also requires that the rail / port facility be capable of 50 Million Tonnes per annum but based on the FMS announcement of 10 December 2018, BBIG have insufficient tonnage to justify a standalone operation.

Now I can wait another 2 to 4 years on this - I have waited nearly 10 already. I think the WA Government is going to be less interested in hearing excuses when the deadline is up (having already been extended), especially since they have seen how FMS shareholders have been complaining.

If you exclude the tiny panic selling that occurred since the delisting announcement - very few shares have traded and the all too clever scheme that minimises the price - makes me think very few will take up the offer - which means the carefully constructed plan could tactically fail and potentially backfire. Trust in the Board that unanimously recommended delisting is now scarce.

I think that sometimes one can be too greedy.

Good luck to all minority holders.

This is my opinion only and not advice. DYOR

Gibonsky