technicals, page-6

Plain and simple the two factors that are hurting Aim's sp the most are the lack of offtake/finance and the new extension in time to expected production.

They are a double whammy that says to holders

"well you'd better make up you mind if you want all your dough sitting in Aim for a while yet until the bigger players come back to the party"

Its not a hard decision for some to simply pull the plug espc when there were probably quite a few that had bought in at mid-low teens expecting to sell at 30-50c.

Now these teens buyers have held off selling whilst the sp looked like it had potential to move past 30c again but now that the timeframe to production has been stretched a minimum of 6 months its a no brainer for them to sell with a 50-100% profit and perhaps get back in in another 3-6 months at the same level.

Ive said before one of the things that hurts Aim is the number of shares Aim has issued.And why?Well imo it has just the right number on issue for there to be a substantial number of market players that will trade it medium term on the project developing rather than just the short termers or the longer term investors.Now that the project has been put on a go-slow they arnt willing to wait the length of time that some of us are.

The more I think about Aim's expectations of producing 12 months ahead of the original timetable the more I realise it was a fairly impracticle expectation as they hadnt even raised the cash to get the ball rolling in terms of ordering the plant.Processing plants generally take 14-16 months to get up and running so when Aim hadnt even finalised the debt by late 2006 we should have smelt a rat when it was mentioned early 2008 to start production.Perhaps mid 2008,which would have made it 6 months ahead,but early 2008???

The other thing that perhaps should have rung more bells was the canning of the C/notes.The only reason I can find for this is a lack of investors likely to take up such an offer.And why might this occur?Well the rear end inconveniently dropped out of base metals at the end of January which probably ended up in the C/note prospectus finding its way to the bin rather than any issuers.Hence somewhat of a slow down in raising the necessary reddies.

One wonders just how contingent the debt finance is on the rest of the equity contingent being raised not to mention a contractual offtake that would allow guarantee of payback on the debt.

Anyway,I still see this project as one thats just to hard to stuff up and it will just be a matter of time before the rest of the cash is raised.One hopes!

d.