No, no correlation at all maka ;-)Both companies are trying to...

No, no correlation at all maka ;-)

Both companies are trying to dig up phosphate in the georgina basin and sell it in Asia. Both were looking at setting up plants to beneficiate the ore. Legend were seriously looking at a slurry pipeline to a port in the gulf. Since the credit crisis and subsequent drop in phosphate prices Legend appears to have followed MAK's lead by concentrating initially on DSO ore and transporting by truck then rail to the port of Townsville. A very similar plan to start up.

Where the two companies diverge is while Legend have IFFCO as a major investor and the Chinese Wengfu in a strategic alliance, MAK has been busy proving up the DSO and total resource at Wonarah, and completing bulk sample mining of an initial 2000 tonnes of DSO.

Legend have a decent DSO source at Paradise North, and have switched focus from the aim to commence production at D-Tree in Q4 09 (trial mining was to have commenced at D-Tree Q3 09). They are now working towards mining approval at Paradise North in Q1 2010 and shipping DSO to IFFCO and surrounding areas by Q2 2010. It will be interesting to see if they will achieve this timetable, considering they haven't achieved any trial mining and road infrastructure to Paradise North is poor.

It is interesting to compare the share price of the two companies (they both have just over 220m fpo's). It would seem that the market is assigning a greater value to the partnerships achieved by Legend, with the market attached to these. MAK is busy attracting customers from Asia and NZ, and some are already close to receiving bulk samples of our DSO, but it is too early for the market to factor in any certainties.

I am very happy to see Legend rise to $1.47. This is a good indication of what is in store for MAK as offtake agreements are made. Achieving this level at the still low RP price of today is bullish for when the price rises, and more so for MAK at this point in time. The current 45c sp is highly leveraged to the coming rise. MAK are following their plan and doing very well in advancing the project to be ready to commence mining by the middle of 2010.

Good luck to all holders in 2010, this will be better for us than the first half of 2008 imho.