LauraB

Eye-catching Red & White "Chromopoly" banner. Very nice!

Just a few comments following your post

- Will CLF sell the chromite deposits: It would be a Yes, imo, since CLF has no choice but to somehow get back some of the money they have spent on BT and BD, especially under the pressure from Casablanca for breaking up the company. The chance for CLF to spend another $3.2B to develop BT is absoutely ZERO, given the fact that it's Mkt Cap is now just about $3.0B, including all holdings in the USA and abroad (noting that they paid about $4.6B, or was it $4.9 B for Consolidated Thompson Iron Mines,... and took a lump of 1B write down last year, just 2 years after the acquisition?).

With or without Casablanca's "suggestion" the new CEO would want to start with a clean board to establish his baseline. There are 2 possibilities: (1) Sell all, or part of Bloom Lake to a potential (Chinese?) partner, and (2) divest (some) RoF holdings for spare cash.

BTW, it's may be a convenient time to clean house as well (e.g. Bill B and his senior staff, who did not seem to know how to perform, could be shown the doors. Their bull-dozing attitude was not successful with their partner (KWG) and other stakeholders such as the FNs, especially our 2 levels of governments. CLF also seemed to have an attitude that our court system is for their own convenience.

- Here is some suggestions for a graceful exit with perhaps some toe-hold, since the RoF could be very profitable for CLF in the long term.

To start with, create some goodwill by dropping the easement appeal. Even if CLF has to pay some $1M, or so to KWH for the court cost, this is small money (keeping in mind that because of the 16% ownership, CLF actually pay only 84% of KWG court cost).

The 16% of KWG is also small money (16% x 32M Market Cap = $5M). But this could be a strategic item for a package deal. For example sell this 16% ownership along with part or all of BD (and perhaps BT as well) depending on how badly CLF want to cash. I would suggest that CLF keep something like 29% of BD as a future investment and let the 41% BD to be lumped in with 16% KWG. This is in effect a transfer of control of BD development of BD to KWG and the new partner (who is well known around there). CLF can have 29% BD as a silent partner and let KWG and the new entity develop BD which is the best/and high-grade deposit (along with BC nextdoor) in the area. BT can be dealt with now or later. At least, CLF can get some $100M back to calm down its shareholders (Casablanca included). Fire sale for BT now or later at half price?

- The new partner: An obvious one is sitting in NOT corner smacking its lips. Baosteel just want to secure the supply from a Canadian mine without spending much effort/headache to run it. A few hundred $M is really nothing for them. They can even participate in the building of the RR and the gas-power smelter.

So here it is a blue print for CLF... Start talking nicely with Frank and let him approach Baosteel for a win-win-win...and win (the last win is for NOT) solution. Bet that Frank would become a hero (and millionaire as well) if he can pull this off. In fact, Frank could speed up the whole process by sending CLF new CEO an ice-breaker text message, "wat cha doin, wanna have a chat over ice coffee?).

goldhunter