consolidation & other issues, page-21

re: fat prophats
I phone Vic alexander a while ago, and he was very convincing - he gave a run down about the direction of the company, assured me that the company would be cash flow positive by late 2004, said all the equipment at Skardon was working correctly and there would be no further oprational issues, that MSC had secured major customers for product, and that a rise in share prices would inevitably occur. He also assured me that no further capital raising was necessary, and that the company was in a satisfactory position re cash. At the time, he also said MSC would focus solely on the profitability and sale of kaolin from its Skardon river plant, and would, at some point in the future look at developing their WA assets. He also said the China quarry deal was positive for the company because it would be cash flow positive from day one.

Since then, contrary to what he said, there has been an issue of options to raise additional funds, the need to order a new bagging machine, and consideration given to relocating operations to PNG. The China quarry deal has also been cancelled - despite supposedly being a rock solid investment proposal.

I guess only time will tell as to whether his other assurances/claims were credible or bogus.