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Message: Re: I think This artical could be referring SFMI

The following excerpt also reminded me of sfmi (due to Batista). Even he makes mistakes. Or was it a mistake? Maybe he's a great salesman. But if this were sfmi, we'd all be millionaires anyway even after the pullbacks the companies in question have experienced. Remember, we are WAAAAAY upstream from the heard.


Ballooning Costs

Both companies have repeatedly failed to meet Batista’s targets in bringing their operations online. Even after beginning to produce revenues, OSX is now trading at less than a third of the price offered in its initial sale, while OGX has lost half its value.

The Minas-Rio iron-ore project -- now Anglo American’s largest -- has also failed to meet expectations. Beset by legal challenges and ballooning costs, the project is slated to come online in 2013, after having initially been projected to start by 2010.

[“It won’t be ready in 2026,” said Joao Carlos Cavalcanti, who partnered with Batista on an iron-ore business that was later subsumed into MMX. “Eike told them it had 750 million tons of ore, but it doesn’t have 150 million. They fell for Eike’s blue eyes. He’s very beguiling.”

The geologist, now developing rare-earth deposits in northeast Brazil, is suing Batista for allegedly failing to make agreed investments in their joint venture. “The guy is a bubble,” Cavalcanti said.

EBX declined to comment on Cavalcanti’s allegations. MMX said its chances of losing the lawsuit are “probable,” according to a regulatory filing detailing legal liabilities.]

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