Caspian outcome - great news for IEC, page-5

Over the last few weeks, the stock has been hit with a triple whammy: Large shareholder sell-down (unexpected and bad signalling), larger than expected settlement and negative cashflow from quarter. 3. All three of which were not expected, especially the q3 negative cashflows. The negative cashflow plus the larger than expected settlement number will have some investors going back to questioning the solvency of the business.

Having said that, the vast majority of bad news has now been dealt with: Case closed, royalty issue removed and production ramped up.It is important that the next monthly update shows strong sales and production numbers, positive comments re exports to India and China and potentially even an explanation of negative cashflow reported. Then we should see the rerating coming through.