going off , why ??????????, page-8

re: brokers reports I'd also heard Wilsons and BBY were bringing out the reports. Interesting comments re the demise of APG, I've come to respect how tough these blokes are and don't expect them to fold easily, especially now with three big boys sniffing their technology closely though they must have skirted close to the edge a few times. Just because there is no news coming out doesn't mean nothing is happening.

So the question is where to from here. Positives I think are:
1 If/when Inco goes ahead there should be a reasonable fee that will fund the company for a period.
2. If/when bluescope goes ahead again some sort of fee will fund the company for a period and with royalties perhaps much longer.
3. Iluka has committed to a large plant and putting equity in the company when the syn rutile plant for CRL works. Ifs and buts in the agreement but bottom line is when it works Iluka will be in and giving APG a 10% free carry and up to 20% of each plant.

Negatives:
1. Inco and Bluescope are very big and their decision making can be very slow.
2. The CRL plant needs a $5 mil bankability funded and this will mean some sort of dilution, I'd guess 25% at the minimum i.g 100,000,000 shares at 5c, though could well be a lot higher.

So I don't think she'll fall over very easily right now with some strong interest around in the technologies but it still will take time for the glacier like decision making in these large corporations to give us outcomes for the trials currently underway. I've heard the trials have progressed well but commercial confidentiality insisted upon by the clients means we won't hear much early on.

Its a hard one to call and has been so for a while but personally I still think the strengths outweigh the negatives. It's still a speccy and at the riskier end of the market so everyone needs to assess their own risk.

Hopefully the broker reports put more numbers behind these projects and their worth

Cheers

Seik