good news, page-8

Linaker

Hope things do turn better for you. I abandoned most this crap a couple of months at losses I have posted about previously and the remaining tiny holding I was keeping to get myself to the AGM I actually let go a few weeks back after the 0.06->0.099 pump and dump... I look back at the naivity with which I considered the potential here with discust in myself as much as the management...

I would suggest that your calculations are a little optimistic in that:

- the figure of 1.6Mt/a = 130kt/m is more than what the planned production capacity is, let alone current.
Current maximum production would be 45kt/m, and actuals are far short of this at the moment.
- expected maximum production would be 90kt/m with new crushers, and
- maximum shipping capacity is currently 90kt/month, limiting. This is the hard limit. (announcemtn 4 Jun 2008). Any increase to and beyond this requires new port to be set up, and the new crushers.
- New port and new crushers require the $40M cash, though prices may be reduced due to change in markets, but also due to this:
- it is questionable whether any steel maker will be entering into new agreements when mills are starting to ask existing supplies to be deferred
- it is questionable whether the financing will be achievable, in foreseeable medium term
- there is now significant sovereign risk w.r.t. ownership and taxes with the mines, given the trouble Argentina is heading into
- it is questionable whether this company intends to actually produce anything at all, instead of shift assets and ASX announcement arounds.

Wouldn't it be a barrel of laughs if they somehow managed to shift Lithium out to protect it whilte they discharge the remaining interests? Or if they managed a shifty to get the cash, to get through to settling with CMSB and courts, then repurchase Charge Resources and regain the Lithium?

At the moment, it's pretty freaukin far from a laughing situation...


Good luck all.