Ann: Quarterly Activities and Cash Flow Report 30, page-7

re: Ann: Quarterly Activities and Cash Flow R... hey Reshy. The vertical intergration being referred to = tungsten mine (hopefully Big Hill) + FeW plant (Vietnam). I have no confidence in mgmt being able to deliver Big Hill (which is not that big) and another delay in the DFS was my final straw. At the very best the projects would not be intergrated until early 2014 and not the 2013 story they spin in their reports. It is also too early to think about Mt Mulgine.

My issue with mgmt is how they always claimed to be on schedule and now that it is mid August and still not complete I cannot even comprehend how they had to nerve to tell the market in jan that they expected first sales in march. Vietnam has missed the mark by 9 months and the DFS will likely pass 12. Vietnam is well under budget but IMO due to currency conversion and not skill. Odd situation but the money saved is probably greater than what they would of earned in the same period had the project been completed on time and on the original budget.

IMO they have been beaten by the very commodity they plan to mine. Timing is everything and all the stars were aligned for HAZ but the delays have cost them big time having pushed them into a bad market, feedstock at highs, frustrated investors and now a low market cap leading up to the funding of Big Hill. There seems to be a never ending line of sellers coming in off screen ever since the June 1 update. Any rise in the share price in the past 3 months has been on the smallest of volume during a break in the selling.

It is not all bad as stage 1 is a margin play so even at low tungsten prices the company can turn a decent profit. I think the project was born while tungsten prices were still at or near their GFC lows so as long as the margin between feedstock and FeW maintains it shouldn't be a problem unless they pick up feedstock as FeW dives. At full production they should be able to drop 12-18m in the money jar every year. If they start producing next month they should be at full production by the end of 2012. I would of thought that should be enough to support the share price at current levels. However if the price of tungsten continues to hold you can't rule out a takeover most likely from an end user wanting to secure their own future supply.

DYOR as I am still peeved at mgmt and my mind is warped with negativity when it comes to this company. More good news is I have nothing left to say.