Balama Mozambique, page-51

....hallo......

Re PWC's calc, assumptions etc....look at the PPE FMV note....where they have had ascertained the fair market value of assets ....page 66-68 in the annual report...Balama @~US$358M & BAM @ ~US$45M....

Re: Convertible Note: it will rank equally with all other unsecured and unsubordinated debt obligations' -this is what I am nervous about...have a look at my posts about two weeks ago... it is two part:

• Part 1: so basically, this will be deemed the same as an unsecured creditor in the end....which means that they will have priority before other shareholders when things go 'pear-shape'.... as the largest creditor they will be able submit a claim against the assets....and this could be a way to get these assets for 10 cents in the dollar....well, basically almost the current valuation maybe I'm jaded, but have seen this toxic structures before....have a look at International Ferrochrome.... almost a carbon copy.... business was acquired for 5 cent in the dollar by MD's ex-employer joint venture.... M.O. line up shareholders who pays for everything....business is run into the ground by management team & then the creditors (some of them shareholders) are then ones who benefit the most out of an administration scenario...all orchestrated before the new funding structure has been announced. End goal is to transfer ownership at <10% the value of funds raised; If you look at the balance sheet pg 53 of annual report...you will noticed that they have raised over US$563M to date....that is over A$900M... current market cap is ~A$100M...

• Part 2: the intent: why have they decided to change the funding structure after how many rounds of vanilla capital raising ...and why has the CFO resigned soon after the deal was implemented? Don't get me wrong, the intent could be innocent and attributed to ignorance, but, remember I am jaded...have seen this before and believe me...other shareholders are usually the ones getting screwed in the process. Hopefully Bruce Gray is not part of this...he will be good partner to have when these things end up in the courts....when shareholders are going after the personal assets on the ex-management team, who was part of these kind of torts.

...anyway....still my 2 cents....maybe we should put a consortium together and do the takeover ourselves ...Anyone interested? I only own a few million shares at this stage...and there appears to be another ~400 million shares to acquire