APG -expanded, page-6

I am genuinely wary on this one. Whilst the APG slow roast technology is great and ideally suited to Eastern states mineral sands resources (high chrome and finer than West australian deposits) they are somewhat limited (through no fault of their own) by the corporate plays around them.

I can say with a degree of confidence that BMX WILL be taken over in the next 12 months, indeed there are four possible suitors who would love to get the mits on BMX's ground if they can work out a way around SGW and their significant holding.

BMX undoubtably have the best ground in the Murray basin - high Ti grades, low contaminants, plenty of zircon and rutile to boot. Their deposits are coarse and up to 50% lower in slimes than any of their neighbours.

I just wonder where that leaves APG. IMHO I would place zero value on APG's 'agreements' with BMX. Possible suitors such as ILU who have their own patented technology to process Murray Basin ores (NewGen) are likely to railroad APG despite all their efforts in developing their technology.

As for Africa/India and the rest of the subcontinent, their Ilmenite deposits are not even close to the quality of Australian deposits. The majority yeild inferior sulphate ilmenites which have far less margin than Australian producers.

Whilst this is probably a harsh view on APG's prospects, being objective is 99% of the game. ILU have announced their intention to grow through further M & A so I would be putting my hard earned into junior EXPLORERS rather than waging success on an easily replicated technology. Have a good look at BMX and Magnetic Minerals for a start and remember any attempt to takeover BMX will be likely to attract counter offers from others who realise the quality of their ground.