the markets response to management, page-44

Litch I wish I had a chance to say hello to you, like I did with Greenwayb.

A few other points that came out of the AGM as to why the estimated capital costs went up from 18m to $30mil.

There was some ready housing for employees, but the council have allocated it to others (I can't remember why),so now $5mill will be allocated to one of three areas the local council has allowed the company to build on. Again these built facilities will be amortised not over the first stage, but can be used long term for every stage of the project.

There is also $3 mill to be allocated to build rail facilities further south to the original area where the ore was going to be loaded. This $3mill is worth doing as it will reduce the overall transport costs to get the ore to port.

Litch the port option looks to be settled on Port Adelaide, but they may want a longer contract for the lower price they will charge, while Ian would prefer shorter as he can see in a couple of years there will be better options.

Also Ian going to the eastern states next week is his second time within a month and it is for the raising of funds. IMO if he is going the second time so soon after the last time then I will assume it is to finalise funding deals not initiating.

Going by the above, you can see how the logistics keep changing and how the company needs to keep changing to get the best deal, while waiting and working with government and private companies who can influence the final DFS.

Ian could have crumbled under shareholder pressure and come up with a DFS 3 months ago to satisfy short term shareholders interest (who would have sold out anyway). However today we would be whinging why the DFS wasn't thought out properly, and why didn't he try and do the best deal for shareholders.

I think getting it right is best for shareholders long term, even if it hurts looking at the price today.