Ann: Quarterly Activities Report, page-94

Hi Greenfront,

I am sure MRC could resolve the issues at Tormin much quicker if they had a decent cash balance, IMO from reading the QTR report they have been juggling its finances and resolving the issues at Tormin, where they can only spend funds on the inland strands modifications when concentrates are shipped.

Have you considered the slow progress with the Inland Strands upgrades are related to the companies cash balance and MRC management would know if they tried to raise funds from shareholders to fast track the progress, it would most likely see the sell down by Zurich Bay as per the last Capital Raising.

Lets say our former CEO is currently selling his holding (this again would limit the chances of a capital raising), isn't it better for him to quickly exit the share registry at 9c (as per the iceberg sell order) it will only take around $5mil to remove him completely from the share registry rather than at 30c which will require ~$15mil?

We know from Zurich Bays last change of substantial shareholder notices, they were released in bulk rather than when their holding reduced by 1% as per the ASIC requirements.

Anyway to answer your question,
Yes the SP performance has been poor, but we know the reasons about that, the company has done well not to require a capital raising which we all expected would be needed in the past 6 months. I would have preferred MRC to raise funds in Jan when the cash balance were getting low, but they have all the information sitting in front of them along with who is selling and would know if a capital raising was likely to be successful.

They have achieved a few good points, we have the improvements at Tormin, they secured new land owner agreements to access beaches 1-5, settled all of our legal issues, Skaland is nearly back to profitability and the company entering into agreements with Mitsubishi and Traxys and I am pretty happy with the companies 5 year plan, it does need a bit more detail i.e CAPEX, no doubt the studies are being held back due to the limited funds the company has.