I have been around long enough to realized that comments made in public view often have 3 components to them: 1.one of partial truth, 2.one of strategic impact and 3.one of constructive influence. When the opportunity to be fully transparent is not available, then the speaker must make the most of all three components.

In the past four years I have found Frank to be very skillfull in his comments. He often gives enough to project a positive influence on the readers, without necessarily devulding factual projections or plans that would compromize future capabilities. In his statement, there seems to be a hidden message for the Govs who do not seem to grasp the urgency of this situation as well as the reality of the value in the ROF, if only to create a sound bite for the media.

In this case he is quoted as saying: ""Recent events have dramatically altered the current value of opportunities in the Ring of Fire," said KWG President Frank Smeenk. "That has exacerbated a difficult exploration and development financing environment for those of us working there. We need some time to discuss these circumstances with all the participants affected by this new reality."

Taken at face value, one might have a gut reaction to this statement, thinking that it points towards a negative outcome. Conversely, if you compare this comment with what Cliffs CEO said last week, (New Cliffs CEO sees ‘zero hope,’ no asset sale in Ontario’s Ring of Fire) you may suddenly see that the strategic impact component of Frank's statement, come into view.

It's obvious that Cliffs CEO wanted to posture himself for negotiations for his assets, because no one in his right mind would talk down the value of assets unless you want to give the impression that you are willing to hang onto them for the long haul. This would consequently force those with a shorter timeline to increase their bid as well as the terms of the agreement.

For those who have the power to change the playing field and/or the rules of the game (i.e. Govs), it sends a message that the political points are no so readily available. In real terms, it means that Cliffs will only sell after the Govs have done something about access and infrastructure, and in so doing increase the value of the assets that they would like to liquidate.

IMHO Frank's comment is factual albeit criptic, but it eludes to the fact that a very important conversation must be engaged immediately with " all the participants affected by this new reality." To me, Frank is basically telling the Govs that Cliffs is holding everybody at ransom, and that if the Govs don't do something significant about infrastructure (i.e. RR), very soon, then Cliffs will just hold on to its assets until the price is right and by doing so, keep all international investment at large.

I am personally very disappointed in the Ont Gov, for playing a hypocritical game of "no! you first!" and "let's not and say we did" and "mommy, the fed gov is making me do everything". As it relates to such an important, historical, economic launching pad that is the ROF, this kind of behaviour is irresponsible and wreckless, and even moreso "conduct unbecoming of an elected official in public office".

In my background, we had a saying: " There's never enough time to do it right, but there's allways time to do it over." Mister Gravelle is claiming that they have to get it right, when in fact, HE IS DOING IT OVER and trying to cover his and Mcguinty cronies` ashes. He had his chance, a few years ago (to get it right) but he got into bed with Cliffs, by promissing them cheap hydro and a private road to boot. Now he wants to take a "mulligan" so he can get it right....again I guess. Meanwhile hundreds of thousands of lives are being affected in a very negative way...and possibly for many years to come, if he doesn't get out of the way or do something authentically productive.

I think the Governments must and will soon move in a direction that will ensure the successful development of the ROF, by making a commitment to the infrastructure so that asset values can be maintained in the ROF, and pivotal negotiations can be engaged/concluded to set the first stages of development in motion.

Best of luck to all KWG and ROF longs

Le Penseur