Ann: Namibian Phosphate Project - Transfer of Per, page-8

re: Ann: Namibian Phosphate Project - Transfe... Seals, hi.

Many thanks for that. Agreed the real dredging (the non-animated bit) looks straight forward enough in slide 16. Ditto the depositing of the stuff on shore via a slurry pipe. It is the other bit: getting 4.5 million tonnes of saleable product with one ship in 4 months (or however long the season is) that may be where the problems will be. To get 4.5m tonnes of saleable product, they perhaps have to lift up a great deal more in that tight time frame, and the ship will be operating near the extremes of its capability both in terms of quantity per hour lifted and of depth limits perhaps). Also, if time is tight, they have to multitask (e.g. transfer material to barges to take to port while scooping up the stuff at the same time?), and there is no time for maintenance/rests, which perhaps has an knock-on effect on mishaps and break-downs of equipment, etc.

Agreed $40m seed capital is cheap to get all those cash flows, but sod's law is because it is so cheap, someone else will try to muscle in at the last minute to try to grab all those cash flows by supplying the $40m on our behalf and leaving us (as defined by the existing number of shares in issue) with a very small share of it, due to the other person diluting us out. To that end, I hope Minemakers don?t get a seat on our Board. Am surprised and not surprised two of our Board remain neutral on JCT. Am pleased JL stood up for JCT.

Agreed I?ve got it all wrong about proportional takeovers. It looks like Mr Jordinson has done some good proposing to alter our constitution (articles of association?) then. A proportional takeover is just the sort of trick I?d expect Minemakers to do to try to get control without paying a proper premium (to hijack those fabulous cash flows for itself if they are for real given what I?ve said about them). I agree the company shouldn?t have any difficulty raising the $40m: it is just who gets to put the money in and at what price that concerns me.

Looks like we aren?t going to get the scoping study before the quarterly activities report tomorrow. We?ve still not got to the bottom of why Dr Reid left. I expect the truth about that will out eventually.
Regards