browns update out, page-11

Well there is some interesting info in the update, but true it lacks any real explanation for the delay and overrun. I do agree that on balance it is more disappointing than positive.

Facts that really grab me are:

- Power wasnt going to be ready by October,
- large cost associated with bond for power connection
- $29 milllion overrun really is only tip of the iceberg because the delay has many other "costs" that will hit the financial position for some time to come
- very unlikely that we will see any revenue generation this year (they are talking May which I reckon they have chosen to try to give some comfort )
- I was always suspicious of the financing facility announced earlier this year and clearly it was needed to sustain us. What dilution is likely to flow if they need to raise more capital?
- HNC are paying up, a positive sign!

The market didnt seem to warm to the announcement either, but that may flow through in the coming weeks. The alternative is also quite possible.

I pose this question which I would be interested in hearing opinions on.

If you were in HNC's position with a huge interest in getting the sulphides up, how confident would you be in your chosen partners ability to deliver your destiny given the oxides debacle? Would you be searching the nightclubs looking for a more attractive and experienced bedfellow to bring you to the climax you are seeking?

If I were them, as soon as the stamp duty is sorted I would be looking to do a deal with the big boys to takeover CMR at the low ball share price that reflects more about the quality of the management than the companies in ground assets.