AJM Chart, page-111

zoomy. the links between the Chinese borders on incest. Because the whole country revolves around relationships you can be sure that most players also know most players. I have not found any financial links between the two but keep in mind that Lionergy are a shelf company and more of a front for the directors involved. Looking behind the directors I still see no financial involvement, Both Lionergy and Optimum Nano are quality players. You can be sure that Lionergy were behind the Optimum Nano interest. You can also be sure that we do not need to show existing relationships because new ones can form in the blink of an eye.

If you recall, the Optimum Nano deal came about around 10 days after Lionergy announced a so called road show. My guess is it was already in place due to timing issues. When we come to mine finance you can be confident it will most likely be a Chinese group and that they will want a mix of debt and equity. So, that will likely bring a third Chinese holder into the mix. My guess is it would be the wealth fund that sits above O.N or Lionergy connections.

Having said that, I'm not convinced they would want to take out AJM or that it would be good for them and/or existing holders. The Chinese are far more astute these days. Why not have a major stake in a well run mine without the hassles. That is particularly so in the Australian mining industry which they know and trust. They have all seen the past disasters and are getting more savvy in investments. We get a lot of questions from them and believe me they generally ask the right ones.

Finally, the panic right now is not what it was a year ago. Most in China see tight but manageable supply. We should not confuse a desperation for overall supply with a desperation for supply from an individual company.

I do see some issues on supply and demand. What makes things so hard to read is which sector will carry the weight of any levelling out in supply/demand and how much that jockeying for position between individuals will soak in the supply chain.

It's moving sand and I'll continue to post on supply and demand each quarter. There are too many factors outside any analysts control for one person to say they know all, including me.