Ann: Fourth Quarter Activities and CashFlow Repor, page-6

re: Ann: Fourth Quarter Activities and CashFl... CHINKAT

The future of GUL, like most stocks, remains for me a foggy vision composed of inferences from the past (in GUL's case often disappoints), blended with optimistic reassuring entreaties from management. The GUL world could erupt into a white heat lithium phenomenon but then again like me you have probably made he assumption that it probably won’t. GUL is path and management dependent – it is a plodder of a stock, lead by a plodder of chief exec who somehow and for some unknown reasons seems determined to keep on plodding. In the past I have questioned his capability to be able to generate commercial success. Your question is, I gather, “Are GUL about to launch down new paths and open up new frontiers and when do I think this will occur?”

Some thoughts:
1. The share price has doubled since April
2. The stock trades more frequently (recently, every second day!)
3. There’s good cash in the bank
4. The results of the stage 2 geochemical exploration at the Dundaloo Project should be announced within days. (Let’s hope the Russian technology they are using is not is not self deluded wackiness, but real an efficient)
5. The retail property market in OZ, and for that matter globally (except perhaps the US), has stabilized and if GUL have the vision and guts a new property purchase in this arena will soon be on the Balance Sheet
6. ‘Geothermal power’. Now that’s a term that a few year’s ago would have warmed the heart and played right, also filled the pockets. But to date no one has yet been able to make a commercial success of it. Could GUL be about to announce an IPO or a deal with an existing industry player? I think they will do this within weeks, of getting all of the necessary approvals. They would be mugs to go it alone. Others have learnt a lot of lessons, in this business over the last few years, so logically why not join up with them. The rock at Avebury (or there abouts) seems hard and the heat shallow, which are key plusses. So no reasons now to dither here. Bring in the money and the expertise in a well planned venture and his could really spout.
7. Coal is maybe a mistake. Although it is a fuel that is ‘mandatory’ resource for our Asian friends it, as the world hurtles towards environmental catastrophe because of accelerating global warming bought about in part by the burning of coal, it just not a comfortable place to be. So if they are going ‘coal brick road’ let’s hope they get in and sell it on quickly.

In summary my necessarily foggy view is that:
a) The Dundaloo results will be announced by 09/09/09 and they will be good
b) Another retail development/rezoning site will be purchased in 2009, but unfortunately the existing properties will remain on the back burner indefinitely
c) There will be an announcement re the launch of the Geothermal project by year end
d) There will be some sort of announcement re coal but this will sadly, over along period and come to nothing

Unless these or other commercial possibilities are met with commercial capability, this year, and actioned, I fear that these opportunities like the money in the GUL bank will slowly ebb away. For the moment, I’m a staying