aussie miner discovers 17.8b energy metal, page-15

Regarding financing: I was at a presentation last Thursday evening where ANZ economist Saul Eslake was the key note speaker. He spoke very succintly on the entire credit crunch topic and I would like to share the following point he made, just so that we cn get an appreciation just how HARD it is to raise money right now for ANY business project.

Eslake says that banks globally have thus far written off $550billion due to the credit crunch/sub prime malaise ($220b of this from Europe -so not just US banks are hurting).

These banks have issued new capital, conducted Rights Issues and placed stock with SOverign Wealth Funds to raise approx $400 billion so far. So...there is still a deficit of $150 billion on the balance sheets collectively.

Eslake says that- on the basis that Banks require 10c capital for every $1 they lend out...the $150b deficit equates to $1.5 trillion LESS money available to lend out.

That's $150,000,000,000,000 that companies like MOL no longer have access to.

So...its a bit tough out there still and we shouldn't think that because MOL cannot raise the cash there project must be no good.

I sense MOL are a little more patient that we are just at the moment in order that they don't lock in loans at rates too high as well.

Anyway..just thought Eslake's comments had some relevance to this discussion.

Regards

Coop