trading day, page-34

Bloomberg interview

Host: "2010 is aimed start date but what about actually making a profit?"

AD: Laughs "Tough question to start with"

AD: "Aiming to quarry rock - crush it and get it up to Darwin for export - we'd like to think we can be in production in a bit over a year perhaps early 2010, if we need full beneficiation plant then it will be end of 2010 maybe going into 2011.

In terms of profit, especially if we can do this DSO the profit should be very, er very sure, obviously depends on commodity price, looks a littel bit iffy at the moment, but the price still looks very good and potentially seeing some very good margins.

Host: "And of course you want good margins because you aim to be a very low capex producer - how much investment are you gonna need?"

AD: Erm look thats still being worked through, right now we are looking at the DSO option but also the full beneficiation option, obviously we are concentrating on the direct shipping, a little premature to come out with numbers yet, but erm how do I say this diplomatically, maybe about $100 million US those sort of order but those numbers will be brought out in greater definition in the next month or so.

Host: Where are you looking to get that kind of money from, will you sell shares, will you go to the debt markets if they should unfreeze by then or what?

AD: We'll do what we have to do, I think that once the dust settles a little bit on the market,then I'd like to think that the equities situation would improve and get us back to where we were earlier on this year. We peaked at nearly $3 a share we're currently 50 something, we've been belted like everybody else although I see on the weekend press we are the 3rd best performing stock on the whole ASX this year. So I guess we got off relatively lightly so far Paul,
what we would be hoping for that the price will get back to reasonable levels in which case we should be able to tap into the equity markets without too much dilution to our current shareholders. Our aim if we can stay away from banks that would be great it simply means that we will be able to get into production earlier if we don't have to go into debt fnance.

Host: Your stock prices is up 174 percent ytd but it shows a wild ride you would have been super brave hanging in there all that way, to be suitably rewarded. Are you at that stage where you are lining up customers?

AD: yes we are, I am in Melb today and this Wed/Thurs is the International Fertilizer Conference and we have just appointed a marketing manager. We haven't done it before to be frank we've had to do metallurgical tests, its no sense trying to market product until we can come up with specifications, we've pretty much got the specifications lined up now, and over the next couple of months. We've had a lot of interest particular from asia, s/e asia, India, some people want deals on the project, others looking at offtake agreements, we've been stacking them up and with the marketing manager appointed we hope to start getting some oftake agreements lined up in the fairly near future.

Host: When, near future, beginning of next year something like that?

AD: Well the marketing manager begins fulltime towards the end of January which is about the time we will have a pretty confident handling of our metallurgical tests work and chemical criteria which will give him enough info to be fully armed to go into talk products specifications to the offtake or potential offtakers which by an large are the phophate fertilizer manufacturers of asia and se asia.

Host: (List our other projects) Whats your next best bet?

AD: Right now phosphate is light years in front of anything else simply because the commodity price has only softened a little if at all. Whereas our other projects like tin, the commodities have taken a real belting. MAK was put together as a company to acquire straw hats and we have large projects in Tasmania, large flourspar project, no one knows much about flourspar, but you cant have aluminium metal without flourspar, prices has hardly dropped off at all for flourspar so thats probably our second project. Right now 90% of the company's effort is being devoted to phosphate, we want to get into production asap, generate some cash flow, reward our shareholders and then use that cashflow to build our 2nd tier of mines.

Host: Very best of luck