questions to anatol, page-9

hi Topsy

i personally see ELM as a takeover target so, for me, capital raising is not urgent

capital is required to commence feasibility studies (could cost $15m, who knows) but i doubt such studies require payment in advance

regardless, ELM can issue 10m @ $3 to raise $30m for feasibility studies, more drilling, etc

if ELM were to set up a mine, i do not see any serious dilution occuring

say the mine costs $700m
borrow $300m and raise $400m at $5 per share
extra shares = 80m
total shares = 280m
EPS on $330m npat = $1.17
share price on PE ratio of 14 = $16
investors make a 200% capital gain and receive gross dividend before tax of 8.4% on a $16 share price or 27% on their $5 investment

or raise $360m at $6 per share
EPS becomes $1.26
share price becomes $17

or raise $400m at $8 per share
EPS becomes $1.31
share price becomes $18