report, page-6

Hi Finch2,

Sorry, I have to agree with LPP08... there is no reason for this share price to bounce significantly in the short / medium term given the outlook.

The current half yearly loss will equate to about 6-7c per share (being a $35 mill loss over approx $492 mill shares).

Given that there is also a possible maximum negative impact of 4c per share in this legal dispute with John Holland ($20 mill over $492 mill shares) it is a very unattractive investment at the moment...

People have been so hammered here (myself included!) that if they were to see strength in metals again, then SGM would possibly be the preferred investment given their nearly nil debt and size.

CMV looks too risky and I agree with LPP08 that a dilution is likely in the near future (as a best possible case scenario)... CMV's bankers will have them under a very careful watch at present and IMO CMV is walking a very high tight-rope.

I have taken a bath on this investment (having purchased a truckload after reading the projected 35% increase in 2009 profit from their annual report) but have recently got rid of a heap of them to focus on some higher quality companies that have been beaten down...

Good luck for a long term hold and I applaud your company loyalty - I hope it works out well for you over the long term....

Cheers
John