still comfortable kori?, page-12

Springkaan, with all due respect, if people are worried about the share price due to the macro-environment, its perfectly valid. At the moment the state of the world economy is uncertain. While some risks are dissipating others are emerging, and I am seeing the market over-react to some things and ignore other things. ORDs/SARCOs commodity is, in the current state, a contrarian play. Alumina/Aluminium is forecast to be one of the worst performing commodities over the next 3-years by most major commentators (I'll send out the material today folks). This is just one of the reasons why ORD is a long-term investment.

I am a huge supporter of management and the potential that ORD has to bring a very large project to fruition. The company has it all - the right people, the right connections, the right assests. This all adds confidence. However we musnt be too confident and get carried away with the story. There are risks (from a project perspective) that need to be resolved and/or mitigated. I am just delivering this as an example, but ORD/SARCO is operating in a country which is by no means 'transparent'. I've spent significant time in the region and there is a certain way of doing business, especially in LAO/LAOS. The Chinese are becoming of increasing importance and today there is a symbiotic relationship; The Chinese provide for jobs, funding, a socio-economic assistance..and from that they influence government. Its becoming increasingly evident that to succeed or maintain a level of power/status as a Laotian-born resident, you must maintain a relationship with the hands that feed you.

Some of the risks that I have on my books that need resolving are the following:
- DFS (project economics)
- IPO date (looking later and later in 2012)
- Licences (convert to mining as opposed to exploration)
- Approval on application for additional tenements
- Govt approval on transfer of licences (SARCO/CLACO is operating 'under the radar' in my opinion).
- Infrastructure requirements (should be in the DFS)
- Environmental approvals (Bolaven Plateau is a beautiful national park)

In view of the above and the upcoming JORC upgrade for Yuqida, I encourage ORD holders to read the following. Its an old (2009) document but still relevant to the challenges AND potential of the project. Not everyone will consider it interesting but I personally consider it MANDATORY reading. It can be found here:

http://www.boell-cambodia.org/downloads/in_search_of_aluminum_RP.pdf