Ann: Appendix 4C - quarterly , page-7

AZG: The Cashflow starting to come through is a great relief for me, I just bought a few more today. Quick recap of the out look:

At 14.5 cents Market Cap is currently $40M
$2M cashflow from operations for the quarter has just come through this time ($8M on an est annualised basis) PC (price to cashflow) 5 in that case. They are backed buy 2 large well cashed Chinese corporations which is a safety net in the worst case scenario (cap raising/takeover etc). I'd much rather be back by the Chinese than Europeans or US...

"forth straight year of revenue and profit growth"
"results in accordance with prospectus guidance"
NPAT profit guidance of $16.5M for FY12 making a current PE of 2.4 maybe PE 3 with the dilution of shares.
great growth record
strengthening of balance sheet after brilliant accretive acquisitions (CIA/Aarcon)
Macro outlook in mining services terrifc.
High ROE of 30-40%
Asset light company which is a good thing hence the high returns on assets.

"The group at September quarter was trading ahead of forecast"

$17M cash on the balance sheet forecast for FY12

"Arccon / CIA under construction projects $66m, works under formal negotiation $131m and
prospective projects $527m."

I mean you guys think about it with the mining services they are are exposed to a broad array of commodities zinc, copper,gold,silver,iron ore,lead,uranium,oil,gas etc etc where as if silver tanks for what ever reason and copper goes through the roof the copper miner will be rich and the silver miner will be bankrupted but with the engineerer that is contracted for the cash to build infrastructure for the silver miner once that job is complete they can just get more contracts with the copper miners and so on and so forth. Mining services are a bet on the entire mining industry not one peticular commodity and that's why the cashflow is steady and less risky!

This company is a terrific opportunity that just got safer with this quarterly cashflow report.