debt repayments

On Oct 31st 2008 ADY advised shareholders that it needed to sell Rincon in order to repay its debts:

1. YA Global US$12m
2. Hawkswood A$12m
3. Private Investors A$2m
4. Besalco A$3m ( not disclosed at that time).
5. Retrenchment expenses and other debts were unknown ( not disclosed at that time).

TOTAL DEBTS Dec 2008 was US$12m plus A$17m or..... Approx A$36m.

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ADY's cash Sept 2008 was A$2m

Available funds after sale of Rincon (US$22.17m) was A$ 35m

TOTAL FUNDS Available Dec 2008........ A$37m

ADY's cash position after all debts are cleared is estimated at A$1m.

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In my opinion the A$9m cash available as reported on the Dec Quarterly Cash Report does not reflect ADY's real position as there is no confirmation that the YA Global debt had been paid at that time.

Maybe ADY's management can clarify its current financial position????

In my opinion with no cash flow expected near term from sale of iron ore ( no production scheduled advised)unless ADY seeks new capital asap it may not survive.