Ann: KRL Signs Chinese Offtake Partner , page-17

Hi Illiquid,

I topped up late yesterday at .23c with the feeling that an announcement of an offtake partner would be announced shortly. Unfortunately from my point of view it wasnt the report I had hoped for and obviously many others have felt the same.

It is possible that a confidentiality agreement prohibited them from disclosing the price. The announcement contained very little substance in general. Saying they had achieved competitive prices compared with the local Indonesian market really gives no quide as to what the profit margin per tonne might be.

The production target for 2010 is 1 - 2 million tonnes. By my calculation going by the report they will be lucky if they achieve 50% of that total.

I'm hoping the quarterly report gives a better guide as to where we sit in regards to both production and cash reserves.

The next entry point for me will be sub 20 cents!!

Cashflow is the key now!