questions for tony, page-42

Well everyone is watching and waiting for Greece to vote on June 17th, that's RISK OFF! money is on sidelines.. and you get what appears to be an irrational market. if opinion polls prior to election show support for main 2 parties is up over a combined 50% it will ease a lot of investors concerns, rightly or wrongly.

Unless the EU can help them stimulate their economy in a sustainable way (take note Julia!) i don't see how this is saving them at all? their economy will continue to contract, they need to pass through their labor reforms to create better competition, sell off public assets with bloated bureaucracies and start to stamp out corruption in public positions as well as educate their people that its actually in everyone's interest to pay tax.. if polls (and the result) goes the other way i think you will see a panic of sorts (Lehman Bros is still very fresh), no one wants to be caught out holding the can and the fear is the other PIIGS will be forced to get out as they cant access the markets at reasonable rates. That would be very bad for Germany as their export markets to these PIIGS would evaporate overnight, not to mention their banks holding ~700billion euros of worthless debt.

Good news for us is that we are almost certain to bank a $65million cheque in 4 weeks and that locks us into a mining start in 10 months time. Our product is premium and fetches a +$30/tonne price over spot and its highly sought after relative to the standard 62.5% ore. Their seems to be some updated details (the keys for Cockatoo?) also coming out in Tuesdays announcement for the EGM with the independent experts report and 'their' estimated evaluation of PLV.

Also the scarier things get you can lock in QE3 from Bernanke in the states and that will give commodities a good pump up, along with China's further easing of monetary policy. Unlike the Europeans they WILL act and get things done immediately if they have to, democracy doesn't work at all in these situations. Just look at the EU!

So while things are still dicey globally we really are'nt going anywhere, but at 20c we have a $55million market CAP for a company that should be making ~$180million profit/yr in 2-3 yrs time (x25 years) that's still a worthy punt in my view.. tony did mention he will BUY more when he's allowed to after these negotiations are finalised so that's also a positive tick, more skin in the game from the captain of the ship is always a good sign.

PS: the ~60MT of underground DSO on Cockatoo clearly would be massive for us, if financials stack up timeone will be wanting to hack at that ASAP, lets see whats mentioned about it in the Tuesday announcement..

That's my rant!

Cheers
SuperTim