I am very surprised and confused. ---such a cheap investment!!!I...

I am very surprised and confused. ---such a cheap investment!!!

I found another magnesium alloy plant in China currently produces 100000t/year, but its first phase investment is already more than USD$70 million. Totally investment is more than USD$ 150 million just for up to 100,000 tonne per year.

Currently the price of the generic magnesium alloys is between RMB 15000-18000/t( around AUD$3,200/t) in China's alloy market. This comes to the annual revenue of AUD$3,200/t*100000t=AUD 320 million = USD $260 million, so I think the investment figure is reasonable.

To produce 30000 tonne magnesium alloy per year, I believe the initial investment should be at least AUD $100 million based on the above info.

May be AML's technology is worth A$50 million? Otherwise I am very confused.

"Not much joy for existing shareholders." ---No, every shareholder can buy the 4c new shares at 1: 1 after the EGM. The placement less than 15% of total issue does not need shareholders approval, that's why AML will issue 13,385,865 new shares first.

Every existing share has the right to get new share at 4c. That's why the SP can go up to 14c when the announcement issued. To say "certain existing AML shareholders" AML just does not know how many shareholders will join the SPP.

I think the record day should be before the EGM, so before that, the SP can go back to 10c+ again.

any ideas? I wish all of you can google serch to find how much funding needed to run a 30000t plant.

Cheers