q report-sp, page-2

Apologies gfu - on re-reading the below it sounds like a rant - must be the good red on a bad day :-)

The Quarterly merely stated what we already knew - that RP prospects were rising strongly however remain a little low to get going yet. Why commit to the ongoing expenses till that has occurred?, and with enough force to give confidence?. It hasn't happened yet, but prospects are looking better than ever - right now.

They needed to raise enough cash to fund the development stage which they have done, and can now comfortably get all the boxes ticked ready to go when the time is right. They won't raise more capital till it's all go - they don't need to and they were never going to start till RP prices recovered - and they won't. Nothing new in the quarterly.... I think tho everyone was waiting on it for some kind of silver bullet after the Christmas lull in announcements and disappointment feeds panic quite well in a market correction.

Timing was impeccable to create an over-reaction to the downside along with the market. Couldn't fill my order at 41.5 this arvo - was carefully trumped in the pre-cspa so I'm not the only lunatic grabbing a few more at prices we dreamed of getting 2 weeks ago

2 weeks ago everyone was "Toot Toot!" -(can't believe that was RKG lol) - I find it hard to comprehend that the CO's prospects have changed much in the last 2 weeks. - MAk is an RP highly leveraged CFD - got to use your own capital I reckon to avoid get played out but the long term direction is only up.

For those new to MAk the Sp is bound hand and foot to the RP price no matter what they do. Even if they say they are delaying for a year and RP takes off, Mak's SP is off to the races and they know it. (Have thought this through as was always a risk - what a way to lose your share of the co - RP goes to $250/T the next month after everyone bails and some insider cleans up yet again). But in the same way what happens if they say 'all go' and RP falls lower? - now that is a scenario even I'm not brave enough to hold for so best plan is to wait.

While we wait we have some extra expertise that will be keen to justify their pay - you can expect Maks other prospects to get the turbo treatment of a larger Mak workforce than would normally be the case now the EIS is mostly behind us. So the cash burn is faster than normal but more will be done in a shorter timeframe on some of Maks much neglected other prospects as a result. Not wasted money -yet.

But the crux of the matter is that for Wonarah it falls to the price of RP - and the going rate is $120/T US which is profitable but not enough to make the risk of starting up worthwhile. i reckon they will still wait for the magic $A150/T they always touted and the EIS confirms as a long term cost possibility. Now the $A took a bit more of a hit today and is 88c which converts that 120 Us to $A136 - close but no banana.

Now if Morocco updates to $132US - all go for us, ooorrrr if $A falls below 80c US again.....or we can prove to the market that having high quality RP in this part of Asia is worth an extra 25 bucks...... then we are go. Simple stuff and what to watch to make any money here doing anything but trading.

DAP (the end product of most RP) has well overshot the price required to get the RP price where we want it - so .......... the prospects look better than ever for a start this year.



- Apologies all - got a bit long winded there :-)