Ann: Company Presentation , page-2

The following was posted on an investor chat site in the UK, after the presentation.

....thanks to Hertsbirder:

I made it along to tonight's presentation and had the opportunity, along with a few others, to talk at length with Rob Gregory after the presentations. He was as you'd expect somewhat cautious given recent experience and conscious that there were a few of us there who had held ENK shares for some time and seen limited return! Key points to emerge for me were:

- They still expect to get the forestry permit license for Caldag, but not this side of the election. They are assuming it may be nearer the end of the year allowing the new Government time to settle in and decide what to do with a politically contentious issue. The economics are such that this ought to be a no-brainer for the Turkish Gov't - $100,000 worth of low value timber (its all pretty much commercial pine plantation on government owned land - Rob said c250,000 trees which the company have promised to replace several times over), set against $3.5m in annual tax revenue!

- In the meantime the plant will be kept on care and maintenance. If no decision by end of 2011, they wil need to reconsider their whole approach. it is of course possible the permit could come through tomorrow in which case the project is back on immediately.

- Rob, not surprisingly, feels that Acoje is the better prospect and is confident that they can bring it quickly into production. They are undertaking infill drilling at the moment to upgrade the status of the resources. While some overall increase is possible, it is not the objective which at the moment is to bring the project forward as quickly as possible with minimal cash burn. So not movement likely on the Chromite either in the short term.

- They have been working on the heap leach process to demonstrate new processing options with the prospect of further increasing the price and saleability of their end products.

- We can expect an announcement on the Hunter Dickinson deal before 31 March. Rob was clearly sworn to silence on their arrangements with the company and said as much, but equally I came away pretty confident that the company invested in ENK for what it had to offer in the round - its heap leach expertise as well as its projects - not just Caldag. Interestingly, I came across a HDI presentation the other day that makes pretty clear that the company is investing in ENK - not just Caldeg. I'll try and track down the link. It struck me as possible that HDI might be prepared to invest more money in the company, but no doubt not at the price previously agreed!

- Rob was clear that the termination of the BHP offtake deal was good news for the company and was confident that an offtake deal could be used to largely fund the company's share of cost of bringing Acoje into production.

- on Berong, ENK were looking for reasurance on two counts: that money invested in the project was only spent on Acoje; and that there was no dilution in the company's share of the project as this was part of the original deal. In the meantime, Toledo was treading water as they could not move the project forward without access to a processing technology.

- the company now have 100% ownership of the Albanian project, but this is currently more of a liability than an asset and they will be looking to farm it out if possible.


- ENK is running short of cash and is considering what to do about it. They have applied for the return of their $3.5m deposit and can also request the return of a $4m deposit paid towards the cost of an acid plant which will help, but I sensed that a further fundraising was possible to see them through to the completion of the Acoje BFS.

Overall, it was clear to me that Rob was very sensitive to shareholders' concerns and believe that the company still has a good future. When you look at potential comparators such as HZM or AFE, they have larger market caps and are a lot further off production though their resource base may well be larger in due course
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