gdy 01nov chart, page-8

See slide 25 (and in fact the whole presentation) from the 26/5/10 investment roadshow ASX announcement.

The Aust Government is not sole funding the development of Geodynamics. The grant provides funding that cannot be raised in the current market conditions. What funding can be raised, will be raised. Remember, tax payers don't get any shares.

It is important for all geothermal companies operating in Aust for GDY to have the assistance to demonstrate EGS power. Just getting the 1MW power plant to work will be a game changer for EGS in Australia.

The spector of a capital raising has been around for quite some time. This, I believe, was one of the key drivers for the share price slide (which was also compounded by EFY tax loss selling). The change to the ETS debate didn't help much either.

There is a massive capital investment required for this business to become a success. Whilst they will use both debt and equity, equity and grants are required until a bankable case can be put.

The drilling costs are substantial. I do hope these costs come down quickly (i.e CKK - GlobeDrill) as this may help re-rate the geothermal companies.