down in london, page-7

re: down in london/xcel I doubt theres issues with Perkoa Xcel.He knows Perkoa will make or break Aim.Theyve been handed a revenue flow for 10 years + for a commodity that doesnt add much to the bottom line of products for its main use of galvanising so its not going to be a great deal of difference to an off-taker if they buy for $0.87/lb or $1.20/lb.Not that they will if they dont have to though.It might be more worth Aim and the off-takers while to provide a higher proportion of debt for the project which shouldnt hurt the off-takers longer term profits,but thats for them to decide.But why would one delay an off-take deal for a few months with zinc prices heading north and you have one of the premier base metals companies organising your finance.

Quote from BARCLAYS analyst Ingrid Sternby.

"Ongoing concerns about possible future protests at Freeport McMoRan's Grasberg mine in Indonesia, the world's second largest copper mine, are underpinning prices.However, falling inventories for copper, zinc and nickel all indicate a healthy demand outlook that will keep prices high for the longer term"

Ingrid Sternby joined Barclays Capital in August 2002 as a metals analyst and is responsible for the base metal market research. Before joining Barclays Capital, Ingrid was a commodities analyst at Deutsche Bank and UBS Warburg in London for several years. She holds a degree in economics from the University of Stockholm and Sorbonne Paris. Barclays Capital is the global investment banking division of Barclays Bank PLC, one of the world's largest banks. Barclays has a long history of involvement in base metals and is the LARGEST RING DEALING MEMBER of the London Metal Exchange.

Off-taker/smelters are the ones over the barrel atm scraping the proverbial bottom of the barrel trying to sign up little or no zinc concentrate for the next couple of years!

They have also been given the opportunity to participate in what BHPb must think is one of the more prospective areas in Africa for another Olympic dam style deposit.Interestingly this is at least the second time(if not the 3rd) that BHPb has wanted to JV with a company in this region and now with zinc prices are at an all time high it has been enough to attract Aim to develop Perkoa and go on to Mumbwa with a decent drill program that will check these potential deposits(which MAY contain Uranium) at depth as well.

If he starts to waste cash on something thats not there at Mokopane I'm pretty sure share holders with let him know.I havnt looked closely at Mokopane.I believe the grades are low BUT its at shallow depth and with most PGM mines on the BIC being deep mines this has to be a huge plus in reducing costs in mining such valuable commodities.Apart from the fact that if he does break down some of the ridiculous red tape thats being developed in Sth Africa atm,with many specs probably thinking they will just throw in the towel,he may be in a position to pick up something a bit more promising than Mokopane.Its always worth keeping your interest in a country that has the largest known PGM deposits in the world.

I notice your disclosure is that you hold a position in Aim and that your sentiment is people should sell on the basis that he may want to spend a bit more on Mokopane.Forgive me if I'm being a bit over the top but you cant be serious when UK brokers have 38c(probably 35c after UK issue the other day) on the company with current dilution which is likely not to be greatly affected come the off-take/finance package imo.

Both Aim/Asx markets are currently showing solid accumulation at 13.5/14.5 so someone has it as a buy at this level.Volumes are down too but price is still being supported which means the market is taking a contrary opinion to yours on the stock.

But lets let the market do the talking over the next couple of months.

If a few others and myself are correct we should be at least at 20c in a couple of months if not close to it.If your right and Florys just going to throw Perkoa to the wind it will be below 10c.

Not many here ramping the stock atm(I'd call myself a supporter)which is also a good omen.

Always good for the contrary view to be thrown up for discussion though.

NOTE/I dont recommend (sentiment or otherwise) buying this stock,that is for you to decide after youve done your research.

d.