Ann: Appendix 3B, page-5

Nice Chart Publunchman.

My take is that world copper prices are at lows. We and institutions try to buy low and sell high or look for income streams which ultimately determine profitability against costs. As such, there is a lot of upside for copper in the longer term where company profitability lies for the company, and secondly this resource scale looks very big with low extraction costs given the lie of the resource.

With the amount of shares on offer which is considerable now, I feel stronger hands have been collecting with a long term view as seen in the momentum pattern of trades over time now.

In this context there maybe fewer holders in the future with larger shareholdings rather than lots of shareholders with small allocations and the scale of anticipated resource is likely to mitigate against dilution in real terms.

That means a large resource and big holdings are likely to give you a pretty good slice of the pie for income and also maintain prices for the small investor in capital terms. Win/win for all. A bit like the concept of domestic prices having to meet export prices of bigger markets e.g. gas. Make no mistake this resource is world class and the bigger players will want in early like the speculating pioneers as risk reduces.

I am inclined to think the sophisticated investors or institutional backers will not be traders in the main and any perceived dumping will be short lived with a few traders doing what they do. Sales probably have to be seen in terms of total shares. Of course my view is long term allowing for normal fluctuations in economic activity in the sector.