we are not happy, page-17

Take it from me that all Oxiana investors do need this merger to go through! Oxiana has a cash flow problem with future expenditure coming up and is desperate for ZFX's cash. Problems at GG and Sepon are not helping matters and rumours are PH costs will be a minimum 10% above the $1.08B price announced 6 months ago and add to that unsubstantiated rumours that PH start up has slipped to 2009. Those of you that think PH is going to start up and hit design production capacity within the first six months need to do a little more research on commissioning projects. PH will put enormous pressure on the Ox's bank balance or should I say what remains of the US$500M over draft. I think you will find that the drop in share price is market related to some extent, tax loss selling and the realisation by the smart money of the significant risks the Ox faces should the merger not proceed for whatever reason. ZFX still trades at a 3% discount to the merger ratio. The risk to ZFX if the merger fails to eventuate is a sharp drop down to the $7 area. How will the market react to the GG news tomorrow I'm not sure but it's looking like June for the Ox will be a big loss!