elephant in the room, page-4

I think you'll find CGV have had to change the detail of their business plan as they have gone along.

The main objective of the business plan has and I have no doubts will remain the same: to commercialise UCG.

A shareholder in any UCG company in Australia would have to question the company if they initiated new plans or continued plans to build a UCG plant in this country right now. I know other governments are monitoring the CXY situation in Qld and unfortunitely we all know politicians...they rarley will want to think outside the square and go out on a limb.

So its pretty obvious why Victoria is on the back burner for now! If the UCG climate was better in this country atm it would be a no brainer for CGV to go ahead...it has the tech, the lease and would of secured funding as other have. But this situation is really nothing to do with CGV's management.

The situation in China is more tricky imo. I think there was four JV partners in this first project and sometimes it is not easy to please all. I believe management are working through it and the AGM preso mentioned a second MOU that was likely so hoping to hear something on that also. As Harkins has said to me in the past if anything changes with that situation it will be considered price sensitive and the market will be informed. So I take it the JV is still in place and getting worked on and the $30m funding is still on the table. The progress in China has been dissapointing though.

I'm glad the company has turned its complete focus to overseas though. There is clearly demand and money to be made and is indeed being made. The next quarterly will be interesting to see the fee based revenues from the HoA with Essar.

While investor's sentiments are largely based on share prices and in some respects that is fair enough, longer term holders look at the companies potential and what it has achieved to date and it is also handy to compare this to similiar companies at the same stage of their companies time in operation. I think most recognise the potential in this company and some might play the game of sell high and buy low but most never get it right and at a stage you dont expect it up shoots the stock and you miss the real big gains.

The fundamentals of this stock will eventually lead to a heavy re-rating of the sp. Remember it has barely been listed for just over a year!