capital raising, page-55

The reality is none of these novice tungsten companies are big earners and I don't think even the big tungsten companies are big earners.

According to the announcements of the old management they managed their buying risk with formula pricing. We will never know what that means in this non transparent rare earth world. There is no hedge in these types of commodities. How do you hedge a few thousand tonnes of product when the Chinese can just dump. No risk management method would work when the price is in free fall like the last year. How would a board with two accountants and a geologist make such a thing work is a mystery to me. Plus there was never enough cash on the balance sheet to make a difference. The best looking risk management efforts would be ineffective without the financial clout to negotiate good deals with the suppliers. Plus the trader owns them.

Now can a mining consultant, an accountant and a west perth lawyer change the fundamental nature of this. Only cash can change this and pray for a tungsten price turnaround.