Business Description:
Flinders Mines Limited (FMS) is a mining company focusing on iron ore exploration and development in Australia.FMS has two main projects namely Pilbara Iron Ore Project and Canegrass Magnetite Project located in Western Australia.

Strategy Analysis:
In FY10 FMS initiated a pre-feasibility study on its Pilbara iron ore tenements with Worley Parsons. The Canegrass project is currently in Scoping Study stage. Metallurgical, mining and marketing studies will also form part of the pre-feasibility study. In addition to the iron ore activities, FMS has continued with its Diamond and Phosphate exploration, mainly in South Australia. Flinders Mines reported negative cash flow of $4.97m for quarter ended 30 September 2011. Operating cash flow for the period was $(4.89m). Payments for exploration and evaluation were $(4.94m). Investing cash flow was $(87,000). Financing cash flow was $3,000. Cash in hand at the end of the quarter was $31.35m. During the quarter, assay results for Measured Resource drilling continue to deliver excellent results at the Pilbara Iron Ore Project; and significant high grade vanadium Inferred Mineral Resource at the Canegrass Magnetite Project of 107Mt @ 0.62% V2O5, +0.5% cut-off.