update on kenya , page-5

Hi 5, yes I was not impressed by Kenya initially, ccc is at extremely capital tight period. Focus on the advanced project and build up cash flow is the key task. Ccc made some unsuccessful acquisition before and some projects end up of impairment written off. project x, vaalbank, lemoenfontein.....but have to say that Mashala was a great deal, without mashala I'm even not sure whether ccc still can survive. Also ccc bought mashala $8mil cheaper than the fair value.

I did projection, actually ccc's gross profit in the second half of 10-11 is about $4.1mil. Of course will be more after the full mashala acquisition completed and vlakvarkfontein more profitable. Ccc's bottom line will be break-even after penumbra's up in 12-13. Very importantly, now there are plenty bargain on the market now, if ccc can settle the vanmag sale and bee transaction and have $30mil in the pocket, it will be at much better position to pick up quality assets at bargain price.