q report, page-10

We all know this share is massively under valued just on the basis of current operations, let alone any value for the extra potential at Munali (extension of Enterprise plus Voyager were not included in recent NPV calculations) or other projects like Songea.

Their debt is all with Jinchuan and does need to be restructured as it in default. However cashflow will continue to increase over the coming months and it will be entirely possible to repay the debts over the LOM with plenty to spare. Provided Jinchuan will allow them time to repay this way, there is no need for conversion of the notes or any other form of share issue to repay the debts. They should concentrate on getting the true value of the company reflected in the SP so that they are in a strong position to do the acquisitions and mergers they say they intend to do to build the company into a major player. Removing the threat of dilution posed by the loan notes is absolutely key to this.

Jinchuan have said they want to stay at 50%, having the loan notes repayed rather than converted achieves this. However if they convert there will need to be an equal sized new issue to others to bring them back to 50%. Given current prices this would not pay off all that much debt (I estimate net debt would still be around $50m) but there would be 1 Bn shares in issue and nearly all the unrecognised value will have been squandered.

I have sent a letter to the chairman with a question to be read at the AGM. It is hard for us little guys to get our voices heard, especially when Jinchuan own so much of the company, so the more poeple they hear from, the better our chances of making a difference