Just to illustrate the dilutive effect:Overall the net debt,...

Just to illustrate the dilutive effect:

Overall the net debt, including the notes, is around $100m. If you take the worst case NPV from the LOM of $203M and subtract net debt (the NPV only included interest, not repayment) the share price right now, based just on current Enterprise resource, should be over 28c.

If they convert all the notes net debt falls by $21m, but the number of shares nearly doubles making the share price 18c.

Jinchuan have said they want to maintain 50%, so if they convert they then have to issue the same number of shares to someone else making the number of shares in issue over 1Bn. If we assume they get a bit more than the conversion price for these so net debt comes down to $50m the sp becomes 15c. Ie nearly all our upside in the SP for current ops get given away.

These figures take no account of Enterprise extension, Voyager or Songea all things they were very positive about in the last Q report. If we value those at $100m the share price without conversion becomes 56c, but after conversion plus new issue is dropped to under 25c. Ie less than half the undiluted value. The more unrecognised value their is in this, the greater the proportional effect of the dillution.

If you have not already done so tell them that you expect them to live up to their objective to deliver shareholder value to all shareholders large and small (thats what it says on their website).