report, page-73

clacko,

of course they are debt free. No-one will lend them the money if they wanted it. This is the reason why they need to come to the market to get cash. It surprises me how many dont actually understand this.

Having a bit of debt, if you can get it, is more preferable than continuing to dilute shareholders at current prices. If the share price had a run to 10c, then yes, take advantage of the price and issue shares. Not at 2c! And I tell you this, the last this they want to do is raise money at these levels, but they have no choice. Ring MT and he will tell you how difficult it is.

ALso, it seems to me that they are of the view that they are a long way off from actually seeing any revenue at all. If you could access some funds (maybe a longer dated convertible note), you need to be confident that you can pay the coupon/interest, on it. It can convert at a higher price in the future so not as dilutionary.

People have to realise that this is a very high risk, speculative stock. And so it could either close its doors, or run up to 6c. You need to be comfortable that you can either lose your investment, or, if you jump in today, possibly make a significant return.

Everytime it raises capital, particularly at these prices, the less likely existing shareholders will get their money back.

I've raised money for companies in the past, and I tell you, management at APG would be depressed knowing that to survive they need to go cap in hand to the market at such a low price. Remember, they raised funds at 3c late last year. They will have problems going back to the same investors/brokers who have been burnt. I daresay, unless they make an announcement prior to the raising, they will need to raise at a steep discount on this occasion. At 2c, I think 1.6c will be the number. Maybe they will do a share consolidation at the same time?

What I have found surprising is that the directors never participate in these raisings. There are other mining companies whereby the board shows support and send s a clear message to shareholders during these times. I know of a small mining company today trading at 1.3c whereby the MD and board have taken stock at 1.6c in order to support to the company. They have continued to do this each year. Can I ask when was the last time MT did this? I haven't seen any change in directors share notices so I dont believe he has for some time (if ever). That in itself tells you quite alot!

You throw your hard earned on it, pay my significant salary which is probably twice as much as any other MD of a similar sized company, while I take no risk at all. Makes no sense.

In addition, why have we not seen an update on potential cashflows assuming the plant has been completed? Investors are in a company whereby they dont even know if the business is feasible? We have not seen a presentation which talks about the numbers for a few years now. Has the business model changed? Who knows. So, how can you value the company without knowing any of these? Or is it purely a punt, with no sustainable business, and so should be treated like a punt. If the punters jump on, do you jump out. Try and make 3 or 4c?