ferrets stock to watch..read

A COMPANY WITH A LOT OF SPECULATIVE FLAVOUR

Sydney - Wednesday - May 27: (RWE Aust Business News)
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A cursory glance at Boulder Steel Ltd (ASX:BGD) initially didn't
fire much interest, especially with the shares around the 10c level.
But yesterday a piece of news lifted the shares 2.5c so the
Ferret decided to look at the company more closely.
It certainly has a lot of twists and turns with potential while
the company is listed on foreign stock exchanges that have a very
speculative flavour.
Boulder Steel has just signed a memorandum of understanding with
Arabia for Business Strategy LLC of Saudi Arabia, a company which belongs
to a member of the Saudi royal family, to form a strategic partnership to
jointly develop Boulder's iron and steel production plant in Gladstone,
jointly develop value-adding and finishing production facilities in Saudi
Arabia and jointly acquire raw material resources related to iron and
steel making in Australia.
Both parties have agreed to immediately commence their
co-operation and to pursue their joint intentions.
The strategic partnership is to be formed on an exclusive basis.
The parties agreed that a formal agreement will need to be put in
place within the next three months.
Boulder Steel said that the Queensland Co-ordinator-General has
declared the company's Gladstone steel project to be a 'Significant
Project' for which an Environmental Impact Statement (EIS) is required.
A Significant Project benefits from a streamlined approvals
process across the whole of government and ensures that the Queensland
Government will become involved in expediting the various processes and
infrastructure improvements necessary for the project to go ahead.
Director and general manager Carl Moser said formal recognition
of the importance of the project to Queensland is a significant
milestone.
"This declaration is the result of the fruitful co-operation
which has evolved between Boulder Steel and various levels of the
Queensland Government," Mr Moser said.
"Taking into account the current market environment, the
fundamentals of building an iron and steel plant at Gladstone remain
robust and the Significant Project declaration is an affirmation of the
importance that the Queensland Government attaches to the development of
the project, further supporting the significance of Boulder's vision."

SHARE PRICE MOVEMENTS
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Shares of Boulder Steel yesterday rose 2.5c to 12.5c. Rolling
high for the year is 22c and low 1.8c. The company has 481.8 million
shares on issue with a market cap of $60.2 million.
The Queensland Government has strongly backed Boulder Steel in
light of 1,500 jobs which should materialise with the construction of the
Gladstone steel project.
Minister for Infrastructure and Planning, Stirling Hinchliffe,
said the proposed steel making facility has the potential to create 1,500
construction and 1,150 long-term jobs in Gladstone, with the potential
for 1,800 jobs to be generated throughout the central Queensland economy
for services to support the project.

BACKGROUND
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Boulder Steel Ltd is an Australian company which is also listed
on the Frankfurt, Berlin/Bremen, Munich and Stuttgart stock exchanges in
Germany as well as on the Dubai International Financial Exchange (DIFX).
It owns 50 per cent of Euro Forming Services GmbH (EFS), a car
component manufacturer based in Bitburg, Germany.
EFS has successfully commercialised a leading-edge forging
technology used primarily for the manufacturing of light-weight,
high-strength car and aerospace components from tubular steel.
The cash-flow producing business has experienced exceptional
growth since its start in 2000.
Markets for EFS products are readily available and further growth
will be ensured by providing funding for expansion.
One opportunity which will require substantial funding is the
expansion of the EFS activities into other parts of the world, where
strong growth markets for EFS products have been identified.
As a first step, EFS has recently moved one of its production
lines into a new facility on the Austrian-Hungarian border where
significant production cost savings will be realised.
ENDS