starting to look good, page-24

re: no green bottles hanging on Hi KG.

As Gip ann in the confirmation of the formal take or pay contract for the 480,000lbs(+ option for another 70,000lbs if available)in Jan 2005,

"The price of the tantalum,which has been fixed for the whole of the contract period,will remain confidential for commercial reasons.The directors advise that the agreed price is consistent with that used in the Abu Dabbab bankable feasibility study completed during November 2004."

The November Bfs has already given the base line scenario that gives an IRR of 17%(all equity) and 29%(80% debt:20% equity).As long as we get the debt finance:equity deal the margin will be no problem with there being enough revenue to payback in around 4 years.The project would not even be considered if the debt:equity was not attainable imho.

This whole industry is about getting the best margins for all organisations in the supply chain as it benefits no one to see ore producers going under or ore customers loosing profits due to too higher ore price.Its about controlling the price of tantalum so that there is a tantalum industry.If there was another spike you could guarantee much of the demand for tantalum would be switched to other technology.Their might be some inherent reliability problems with the other technology but the end users would probably be prepared to wear that as it would reduce costs overall.However it is still generally appreciated throughout the electronics industry that tantalum is a much better product to use due to its unique characteristics as long as the price is reasonable.

d.