just bought in, page-5

Hi Bigben, I did go to the presentation but bear in mind I missed the first ten minutes due to the typical bloody Sydney traffic.

None the less I was able to speak with Alan at length about many things including all your questions so I'll start by giving you some feedback

1) when is NAD sypposed to be at full production?

According to Alan, it has been at full production since the the decline was announced earlier this year, yet the quality of the coal in a few of the shipments was not as great as before so they are considering the idea of dissolving the contract to focus on better things.

He stated while NAD has generated a steady cash flow, they aren't too concerned about the current arrangement as there are much better projects to focus on that will return better cash flow. They may end up working out a new agreement to get cash from NAD without having to farm out like they are doing now. As for the possibility's he didn't speak about the finer details but said there are much better projects so I guess in the future we'll hear more details.


2) When is first shipment from TCM scheduled for?

This was a good question, as there are a couple of decent possibilities. Plan A is to work out a deal with next door neighbors ATA Coal mine to allow them to start up production using part of existing hole and high wall. If that's the case then expect Coal to be on the way within the next six months quite possibly somewhere around March/April 2012.
If ATA don't assist with start up, then the first shipment would most likely be close to midway through 2012. The TCM project wouldn't he held back more than a few months if ATA Coal let Pan Asia go it alone

3) Do they have any plan for financing the TCM project? yes they do, they have a few options.

I asked this question in a few forms, one being will we need a cash injection at some point down the road? Alan's reply was this. "We are very confident our company is in a strong position to avoid any capital raising in the near future"
So I asked him again. Surely you will need more cash to get feasibility and TCM up and running?
He said, things are looking very good, we have enough in the kitty to get us by and want to avoid dilution.
So I asked again. Are you sure about this? I mean, no capital raising? He said "no'. Not in the near future and if there was a cash injection, it may be done using offtake and potential partners.

He spoke about the certain scenarios regarding Kopex etc and there are a couple of big guys (he wouldn't tell me who these big guys were, other company's or people I have no idea? but he seemed excited to think these could be the ones to support any financial set ups the company may need help with) I guess he can't spill the beans about that just yet so we wait to find out.


4) Do they see any need in the near future (the next year) to do a capital raising?

I found it hard to believe they will avoid diong a CR, but Alan and Jason once again gave me assurance that they have no intentions to do CR. Alternatives are, they may use a farm out agreement of some kind. As stated before both Alan and Jason believe the company is financially sound and will carry itself into production.

Anyways, I hope that answers your questions. I did enjoy being able to speak with Alan and Jason, although I didn't win a lucky door prize there was a definite positive vibe about PZC's presentation.

A few other things that were mentioned:

Pan Asia's current market capital is extremely low, sub $10 Million which is almost insane. Alan personally believes Pan Asia will reach a market Cap of at least over 100 Million sometime next year. I alluded to our current market conditions to think that may be a difficult task but he seemed quite confident it will be achieved.

Personally, I would love to see the target market cap of 160 million end of 1012 as stated in this years research report.

Bear in mind, a company with a thermal coal production profile of greater than 3 million tonnes pa and resource base of over 100 million tonnes should command a market capitalisation of several hundred million.

And while I was keen to know if I would be receiving a dividend sometime down the track, I have a gut feeling that within the next 5 years this company will be bought out or taken over by some big fish.

When speaking about this possibility to Alan, he stated that if something like a take over was to occur, it would only eventuate if significant value was given to current shareholders. This explains why directors have been buying up shares.

Before leaving, Alan alluded once again to these so called big guys who are very keen about what PZC are doing. Who could they be?

Anyways, I'm very excited about holding this stock once again after a non exciting year. I know we've had some terrible market conditions to deal with, but fundamentally we are strong, and all the right boxes are being ticked.