Ann: $1M Capital Raising, page-11

You know, you can wait weeks for an announcement and then 6 (six !!!) all come along at once.

Where to begin....

1) China subsidiary - all good, but its just really another cash-draw on PDY parent shareholders. So now you're paying for a whole new lot of Nespresso machines and capsules. Aust-China Resources Limited must be a Chinese company because its not listed by ASIC;

2) Shanghai office - hopefully nicer than the dump on 100 Colin Street. But again, another demand on cash. Its location just across the road from Hongqiao Golf Club is one of those happy coincidences that always fall the way of the 3B miners. Don't forget your golf clubs !

3) The Mineral Resources statement - say it how you want, but 925 million tonnes @ 27.22% Fe just shows they were a gold company looking for gold in Banded Iron Formation, didn't find any, so just reported the waste grades for iron just to cause a bit of excitement (December 2008). No matter how you spin it, there's material just like this on waste dumps in the Pilbara with all the infrastructure, electricity, and water needed to produce "magnetite". Maybe BHP and RIO just haven't checked the grades of it ?

4) The Mining Lease application is quite a juvenile attempt, but I see there were no objections and the WA State Government recommended grant on 27th Jan (according to Mineral Titles). Now begins the costly, grinding negotiations with the Traditional Owners, that took SinoSteel 5 years to complete (Dec 2014) for Weld Range;

5) And getting 2 guys to buy 50 million shares each at 1 cent..... well, its still US$6,468.44 million less than the previous binding funding that was secured back in April 2014. And there are still 335 million shares still needing placement. If it had been a broker-sponsored rights issue it would have been seriously undersubscribed. If you're a current shareholder who bought at over 1 cent this is just dilution and its still a case of "leave them in the bottom draw"; if you paid less than that, well, lets see what they emerge at when the PDY directors are brave enough to put it back on the boards;

At the end of the day, there's apparently no interest from major investors in China in Peak Hill or Fakeogee. This is working capital and renting and running 2 offices, 2 coffee machines, and 2 colour laser printers will eat up the cash. I can't think of too many companies which have done well after a Chinese cash injection. Without a clear development plan and a market for Peak Hill the cash is sustaining capital and dripping out like a leaky tap.