administrator appointed, page-51

In my opinion, Platinum Australia voluntarily appointed a administrator because in the future they may become insolvent (Section 436A of the Corporations Act).

"The facility with Macquarie Bank Limited is a revolving working capital facility repayable by 30 June 2013" (March Q)

Cash approx. - $ 20 m
Loan - $ -10 m
Estimate Operating exp June Q - $ -2 m**
Real Cash Position - $ 8 m

**Production numbers haven't been released except April and June. June is just about the same as the month of March, April was better, so they should only lose $0.5 m. Production was increasing well, until the safety stoppage. The suggest a costly dispute with the old contractor, don't have any information on that topic so it is left out.

Yes, i know that the loan is money, but they will have to pay back the bank before 30 June 2013. In my opinion the bank will not refinance the loan or give them another if they are losing so much cash, they would have to put together at least 2 quarters of positive cash flow to convince a bank to give them more money to operate. They were about to finally become positive in the June month (June Q still negative cash flow) and this could've been the platform to finally earn money in the next 4 quarters.

Ultimately, this is a restructuring and not a liquidation, and i think that hiring an expert to finally do the managements' job for them is a better option then going bankrupt in a year or too. However, the management is incompetent and should be sacked, they have to hire someone to do their job, and yet they still get paid, while the administrator will get paid also.

Pitcher Partners will probably come up with these options: Capital raising, merger, sell a project, close smokey hills and try and get as much cash as possible to start another mine.

In my opinion Platinum Australia still could have a future, they need big cost cutting, platinum price to increase and production to increase at Smokey Hills or move to a different project.

Tell me if you think i'm missing any important facts.

Thanks.