Valuation post IOH Takeover, page-8

Your contention that post IOH purchase that BCI is going to become a growth stock like FMG implies that somehow BCI is going to drastically cut their dividend. As I said IOH's Iron Valley will be throwing up royalties without one dollar of capex required given MIN are responsible for this. On Iron Valley alone there is enough income to fund dividends on the additional shares issued. The only attraction to me from this deal is the BCI dividend going forward.

I didnt follow BCI till yesterday but one look at the yearly chart and it seems like you are highly highly leveraged already to the IO price like every other pure play IO miner out there.

Also refer to Mac's post on the IOH thread from the call yesterday:

"* Also, much debate and excitement on bci threads re the phos – Alwyn estimates 5-6% discount due to phos on IV. Also highlighted that 60% of IV is 'lump' io..."

So discount for high P levels but offset partially by lump premium. High P levels hasnt stopped MIN mining the hell out of Phils Creek as well as ramping up Iron Valley to 5mpta and making this their sole operating mine in the future. Not sure if MIN blend it with other stock though.

As I said in my original post, the key wildcard is funding Bucklands. As I also said in my original post, there are a LOT of options to get this done whilst minimising capex. How this plays out into the future who knows. A big attraction will also be getting tolling fees from other miners using the port and therefore reduce leverage to the IO price. But without buying IOH i what would BCI be trading at with a two year mining life left? Would it still be a "defensive" play?

In any case time will tell and we shall see if BCI remain true to their word and continue their very un-FMG like dividend payout.