broker report: 3rd feb 2012, page-9

ispy

BFS for Namibia will out around end of March, then we will get more detail about de-risk on that project.

I think the major risk for Namibia project is low quality compare to Morocco's rock phosphate, so they need to make sure buyer is happy with these quality at lower price, or they need improve their washing process for better quality.

if their BFS confirm DSO is feassible then we can say this project is de-risk, the project cost 144mil and can yield 70-100mil operating profit in phase one(1mtpa)

for 144mil cost, it will fund by 60% debt plus 40% cash( about 50mil cash) and MAK have to pay half of those cash.

MAK have 14mil cash, plus 15mil from LLC(by issue share to them anytime at market price), plus unknown amount from Wonarah payment.

remember, we are not selling 50% of company, we only sell 50% of Wonarah project, and the Indian firm will pay billion capital cost, and this project will yield 300mil gross profit with current price