lsg behaviour?, page-4

re: lsg behaviour?tubs Tubs,

1.Phone up the people who you say know me, and arrange a beer!

2.Think long and hard about the company's announcement and the what if scenario I gave you the other day.

It is the Festive season in a very spiritual country located in a tropical climate-whilst the company is obviously going flat out to commission the next stage, it still requires a departmental go ahead from bureaucrats.

Given the total neglect of the mining industry in the Philippines for over 30 years, you have to deal with very inexperienced bureaucrats.

In OZ it would have been sorted out in days, not so here and not so at this time of year.

Allow for these factors before you dismiss too many directors!LOL.

3. Given your level of vitriol, have you actually tried to contact the company? The relevent individuals are in town.

4. I have my own seperate contacts/colleagues in the Philippines. They strongly suggest LAF is being treated harshly , more particularly by certain elements in the media. There is evidence that it is a beat up from pillar to post-from the quantum and nature of the first minor spillage right the way through to whether any species of the type of fish supposedly recovered exist near that part of Rapu Rapu.

5. I am known to frequently fire from the hip-but I don't go on firing without doing further investigation.

6. Capital requirements? Will be only guesstimates until the Government position is clarified. So when will it be clarified? Don't know but expect an update pre Xmas.

My calcs suggest a daily cost of about $75,000 a day for staff and consultants etc. Buffer before production originally due to commence was about $3m. If production now put back about 60 days (until end of January) that leaves a deficit of $1 to $1.5m. Call it $2.5-3m for contingencies.

Source? Stretch creditors, additional trade finance from end users (Koreans), existing banking syndicate, equity markets. In this current metals market I would go the Koreans as far as possible.

Cheers,TAS