market likes it, page-2

Bradley

This looks like an unnecessary dilution. The value from COK is not only the coal, but the availability of transportation facilities for which COK will pay via freight charges. The rail line will be a QLD state facility, I understand. POSCO will therefore benefit from a local facility by buying more shares in COK (it already has a shareholding) at a low price.

The COK share price was rising on the back of its recent announcements so there was no need to raise $25 million at such a discount. Also the funds could have been raised locally. COK needs to justify were the funds will be required in the short term.

This an example of a company being driven for very rapid short term growth where the management and key shareholders (Toyota and Posco) will benefit the most.

Having said that, COK will be a success for current small shareolders, just not as much if its managment were not acting in the interests of selected shareholders. POSCO will buy COK's coal, becuase it needs it for steel making and does not need a 20% shareholding to do this.

I suppose voting against this share placement will futile, but that is what I will do.

Loki