OK - we all know where APG have been and you have either bailed...

OK - we all know where APG have been and you have either bailed or decided to hang in there.

So where are we now?

Cash - enough for now, as always will need more.

It is anticipated that APG will receive within the next 4 weeks around $2.0m plus from R & D. This should provide sufficient working capital for the next 18months. One would assume the they would have put to bed a deal long before then and almost have the plant completed.


Projects;

ABR - Would hope to see deal with ABR within the next 4 weeks allowing APG to use their technology in conjunction with the APG technology. The ABR technology enhances and increases the profitability of the Newcastle plant. This would be ideal for ABR to see its technology in a commercial setting allowing others to see it.

Ixon - APG have completed costing's, flowcharts etc and provided them to Ixon. Ixon are currently doing their due diligence with ongoing meetings between both companies being held.

Funding for the plant.

I believe the management understand and accept that with a SP as low as it is issuing capital (dilution) is out of the question.

So, what are the options:

1) Borrow from a bank. Don't think so. One of the reasons APG has survived so long is because it has kept its Balance Sheet free from debt.

2) Jv/Licence - I am not sure what Ixon are actually planning with APG however clearly APG need millions to finish the plant. Obviously there are many ways to skin a cat and Ixon are interested.

3) R & D driven investment. When APG commission the plant given their turnover will be less than $20m and given they meet other R & D conditions APG will be entitled to a R & D payment in the vicinity of $11 - $15m. A common tool for investments by fund managers, investment houses and hedge funds is to invest in a R & D project.

This investment entitles them to the R & D refund as well as "profit" which can take many different shapes ie cash, equity or shares. This is not foreign to APG and could be an option.

4) Shutting up shop.
In the words of Turbo and Gaston "absolutely not". Both these guys have been there from the year dot and both are extremely determined to succeed. They have the support of the other two Directors who have chosen not to draw their fees for the last 12months. Any other company the Directors would have bailed and the MD would have shut up shop. Without doubt their determination to survive is very strong and with the pending R & D funds I'm sure there will give relief to them as well as the share price.

The above is a combination of my own views and information freely available to the market via previous shareholders updates and quarterly reports.