high production cost n 20c option kill price

The company knows the production cost but will not announce it because they claim the commissioning HAS not reached the steady production state yet (it started in March 2007, they still has not fixed the problem, IMHO, it is not a valid reason for not disclosing it). At least one WA analyst has put the cost above $1000 in his weekly resource report.

Another potential issue/worry is the 9.18 million option holder that has exercised more 900k options so far (refer to company announcements, Appendix 3B on 26 May 2008, 5 May 2008 and 4 April 2008) and sold them on the market. So as long as the price above 20c, the same option holder will exercise it and sell them on the market. I believe the options were owned by a previous director of CRE and the option will expire on 2/8/08 with 20c exercise price.

good luck for holders.

cheers,
BL