The relative performance of the JV partners makes interesting,...

The relative performance of the JV partners makes interesting, but sad reading for EKA shareholders.

The following shows the prices at various dates:


DATE EKA AUT ADI

1 Feb 12 31.5 16
23 Feb 17 46.5 33
3 Mar 15 42.5 29
4 Mar 14 43.5 28
11 Mar 12 41.5 30.5
16 Apr 11 49 28

% Changes:

1 Feb - 16 April:

EKA AUT ADI

-8.33% +55.5% +75%

23 Feb - 16 April

-29.4% +5% -15%

3 Mar - 16 April

-26.66% +15.29% -3%

4 Mar - 16 April:

-21% +12.6% -

11 Mar - 16 April:

-8.33% +18% -8%


What can be clearly seen in the figures is the poor performance of EKA versus the other two JV partners. The only distiguishing feature over this period of time was the capital raising by EKA.

This capital raising has accomplished two things:

1. Destroyed shareholder wealth

2. Prevented shareholders from sharing in gains from activities of the Joint Venture.

For those that did not take part in the capital raising also saw two things happen:

1. Their share of the company ownership was diluted.

2. Their losses in wealth were greater.

Given that over the time period from 1 February to 16 April that the average gain by AUT and ADI was 65%, EKA shareholders can only wish that they had a similar gain.

Had there been no capital raising it is my opinion that EKA shares would have been able to have a similar gain and would now be priced around the 20 cent per share level.

Even giving a discount to the lesser gain shown by AUT over this time would have had the EKA share price at around 18 cents.

IMO the under performance of the EKA share price is totally due to the cap raising by the BOD of of EKA.