did mak mislead investors?

Did MAK mislead investors on Phosphate Rock Prices?

On 30 Oct 2008, MAK released a copy of its investor presentation made in Qld. Slide 15 of the MAK presentation as released to the ASX stated current Morocco Sales at US$450-500/t fob

On 13 November 2008, MAK released to the ASX a copy of letter sent to shareholders stating "phosphate rock prices have been relatively unaffected".

However there are problems with both of these statements.

Fertilizer Week on 30 October 2008 released a report stating OCP Phosphate Rock contracts settled at US$320-380/t fob (page 10) The Prices stated by MAK on 30 October 2008 in its presnetation were 31.6% to 40.6% higher -(120/380=31.6%; 130/320=40.6%) than reported by Fertilizer Week on 30 October 2008.

A week earlier on 23 October 2008, Fertilizer week reported that OCP the world's largest producer would be shutting down its Jorf production complex from early November for 40 days because of adverse market conditions. (page 11) underscoring an issue in demand.

Further a report in Fertilizer Week on 6 November 2008 stated that Egyptian 65.5%BPL phosrock was on offer for as low as US$200-220/t cfr (page 12), demonstrating that indeed Phosphate Rock prices were significantly deteriorating.

Phosphate Reports on Fertilizer Week can be found at http://cruonline.crugroup.com/Default.aspx?tabid=481