how long?, page-29

Hi Reichman,

I have to say the silence concerns me. Having observed Gus for a years I've noted that he tends say nothing unless he has something good to say. The current state of affairs reminds me of the PEN DFS episode in many ways.

The funding issue is a real one and I suspect due the nasty macro environment management has gone to ground due to difficulty finding investors. Now that things are turning upward again (for a few months at least) I think they'll take what they can get for two reasons. Everyone knows the EU issues are just being swept under the carpet and will likely come back soon. I'd guess we've got maybe a 3 month window. Second that window coincides roughly with when the wet season starts. If they don't move before either of those things happen then they face the possibility of being forced to care and maintenance until next year which needless to say would not be an ideal outcome.

My theory is that silence from management is simply because they are stuck between a rock and hard place. They don't want to spook the SP lower because they know they need to raise funds. In the meantime they are perhaps hoping general upswing in macro environment will give them a bit more lift, or they've just accepted that current price is what they'll have to raise at and are looking for investors.

Given that the funding is such a sensitive issue it seems inconceivable to me that if they had funding sorted out they would have let the 'late june' deadline pass with stony silence.

If QPN can get a drill in the ground this year I see big things ahead for this company, the cap raising will be a bit of short term pain but I wish they'd just take whatever the capital markets are offering and get on with it.