first gold pour, page-6

At these levels there hasn't been a lot of supply so you would hope its found a new bottom. I was looking for a re-entry today when it popped below 40 but there were not many shares for the taking and it didn't surprise me to finish flat. Seems to be plenty of resistance above 44 though which nordasmic was suggesting with his charts.

I think there would be a range of issues surrounding the current SP activity probably all have been discussed previously.

1) CR - No idea how quickly the cash from Tomingley actually starts flowing to Alkanes bank account. As previously mentioned, they are running a very tight ship this quarter, and with RRL currently suspended from trading, with likely bad news that extra option for 9 million-odd to top up the funds isn't looking as good as it was. Ideally I figured they would wait until fully committing to the DZP, and with a secured funding package (and announce a CR together). Unless there was a solid recovery of SP in the interim they might be tempted. I wouldn't like to see them raise at these levels, but if things get tight you never know.

2) Traders, agree with MTM, there may have been plenty in expecting a rise with Tomingley come through but have now either profit taken or realised this project isn't the main driver behind ALK SP.

3) Rare Earth prices - still generally stagnant, even though predictions are for a good year.

4) Zirconium prices, stagnant (or declining) also.

5) Light rare earths cerium and lanthanum issue. Alkane has been clear they are placing little value on these given the market, and this is a smaller component of the product output and revenue - but its still assumed in the business case that it will be sold with a margin. Any offtake agreement would be significant.

6) DZP funding arrangements

7) Uncertainty with NSW government approvals and dealing with community concerns like the uranium article recently posted.

Any real changes in 3-7 and I think there will be some sustained movement in ALK SP. Long term for what its worth I still believe its a great investment but these are the sort of things that will always be playing on the SP if taking a short term view.

Cheers