Standard Bank, page-27

Thanks for that Pika, (I call it as I see it)

So we are in agreement on some aspects. I agree, if CDB has as requirement that EP3 must be met, then yes, I can then envisage that SDL, under no circumstance would put a halt to this exercise. However, from a Chinese perspective I cannot think for one moment that they will concern themselves with such technical issues (that is just my personal view and I could be wrong.)

Let's take China out of the picture: where does it leaves SDL? Exactly in a state/position as you've pictured above, that is that SDL has no choice but to push ahead with EP3 in the hope that they will procure funding from one of the financial institution which we've mentioned. That I can accept but the crucial issue which I then raised is, given the dire economic environment in which I/O as a commodity finds itself in, AND the ticking time bomb fast approaching, coupled with SDL depleted cash balance, do you honestly believe that SDL has the capacity to pursue EP3 as we speak? I don't think so. Why is everything so deathly quiet regarding EP3. SDL has failed on promise after promise and I don't think they would have hesitated for one minute to drop EP3 - more so as a result of their precarious cash position and with no guarantee that EP3 will be completed in a timely manner, and even if they do, there is no guarantee that some or other Bank will jump up to the plate to offer total funding. You will note from last quarterly that they have cut "contract work" by 80% (I suspect the contractors sourced for EP3 was part of the 80% but SDL is to shite scared to come out and reveal all facts - why was there no updates on EP3 - I'm starting to think that Jill resigned because she has had a gutful of conveying the SDL spindoctor's messages to investors any longer). Rather, I think SDL is having a last roll of the dice - that is, WAL to try and flog (this was the only clear message emanating from GC speech at the last AGM) the infrastructure and in the belief and hope that they will succeed, they dropped EP3. Why would they continue incurring massive cost for EP3 when it is somebody else' obligation to meet it should they succeed in flogging it off.

Have a think about the games that have been played by this illustrious team for so many years (well some of them obviously saw the writing on the wall and decided to cut all ties) and ask yourself again whether EP3 is in fact in train. Going on the past, I believe, for the reason above, that they simply scrapped it from the table, just as they did with the Fluor EPC, now quietly hoping for some miracle.

We need clear, unequivocal answers/statements from these guys on these issues but I have absolutely no hope in getting any soon.

Next announcement (that's if Cam granted further extension) will be the announcement of a CR whereby SDL sold another 25% of the company for 25 mil.


Thoughts awaited