T/O, page-8

For someone who continually wants the “facts”, you don’t seem particularly interested in looking into them much do you?

So the negatives continually go on about the “price manipulation” before the CR, and the “Chinese” that then bought in.

Let’s look at this a little closer. The initial CR was done in the week preceding 10 Nov 2015, which I suspect was done to coincide with the timing of a proposed NEGI announcement (good strategy). The SP had it’s recent peak in late October, as momentum and excitement was building for the NEGI, especially as the possibility of the southern route was deemed potentially likely. There was no manipulation, share volumes were high on a potential outcome.

As for the Chinese being the ones who bought in, the only formal hint we have of who the CR investors were is in the announcement of 10 Nov 2015 with the phrase “institutional investors in Australia and Hong Kong”. There are obviously plenty of Chinese in Hong Kong, but there are also a whole lot of British and other international investors there as well. The other informal hint is who joined the Top 20 shareholder register immediately after the CR (between the published lists of 16 Sep 2015 and 01 Dec 2015), and there are 4 new entrants as follows;

CS FOURTH NOMINEES PTY LIMITED : 7,130,780
NATIONAL NOMINEES LIMITED : 6,370,632
LUJETA PTY LTD : 4,605,264
MORGAN STANLEY AUSTRALIA SECURITIES (NOMINEE) PTY LIMITED : 4,228,575
TOTAL: 22,335,251 shares

So with the CR placing 55,307,843 shares, what happened to the other 32,972,592 shares? There are a number of possible outcomes;

- With the share price staying over 20c for the week after the CR, and volumes still quite high, some of those who picked up in the CR for 19c could have quickly flipped them immediately for a tidy profit
- In the last 2 weeks of November some of the CR participants may have sold for a loss
- There were at least 10 more institutional investors who’s purchase quantity was not enough to be in the Top 20 (ie. <1.5M shares); unlikely in my opinion
- a combination of the above (most likely in my opinion)

So to suggest the CR was taken up by one or two Chinese buyers is simply wrong.

And that’s a fact.