spp closes oversubscribed, page-21

Micky, I think the DSO results will go a long way to determining just what happens at FWL. They are targetting DSO as a priority to give them cashflow. I still remain open-minded as to what path FWL may take. There is always the possibility of them choosing to just sell their 1.5mt of concentrate rather than try to value-add. I think much will depend on the state of the world economy at the time.

There's nothing wrong with planning to produce pig iron worth $480p/t at Eradu, because they can change their minds at any time if the risks are too great. Taifeng are sole-funding exploration and feasibility studies to earn 67% of YOGI. There is still the matter of capex to be sorted out, so FWL may yet only end up with a very small percentage of the project by the time any fe is produced.

Low risk entry price at the moment. I participated in the share issue recently because I think FWL will be re-rated soon. Only a $5m m/c and Taifeng willing to put in $4.8m at 4 times the current sp and spend another $20m if FIRB approval is confirmed in the next few weeks. Hard to see FIRB knocking back something this small, especially as FWL are still retaining ownership of a third of the project and talking of value-adding. If this doesn't get up then FMS has no chance of getting FIRB approval and neither will virtually any other deal, including Oakajee. Can't see the government upsetting any foreign company willing to invest in australia atm.