Ann: PEA Half-Year Result Release Date & EBITDA Guidance Increase, page-9

hfrench, your willingness to remain open to the proposition of others as to fair value being at or greater than 75c is refreshing as I would openly accept at this point a 15% increment in my PEA portfolio on the back of welcoming the reintroduction of a dividend.

Your observation that 35% EBITDA growth has occurred on the back of the Contract Power and Nova acquisitions is fact and equally your observation on the cyclical nature of the business, equally accurate.

What doesn't evolve in your analysis which has been a point of emphasis by management over time relates to the synergies of the businesses that have been acquired increasing the economies of scale and likely reducing on overheads relative to turnover, thus increasing margin, to be demonstrated one hopes in the half-yearly release of figures.  The early release of figures is encouraging however this needs to be analysed to determine if such synergies are indeed being achieved. Further acquisitions remain on managements agenda where the benefit to business can be demonstrated.

To suggest what has to date already been a very successful business development storey has no upside suggests to me that you think management is going to sit on their hands. I think not and look forward to management outlining the opportunities for business growth and sector diversification in the future.

Contrary to your comments on metals pricing the other short to medium term positive for PEA is that the gold price is showing a definite upward trend and therefore at least in the short to medium term, exposure to the gold sector is a positive and not a negative as you have portrayed in your former comments.

On the evidence produced by the company thus far I am willing to take a glass half full approach and remain optimistic as to its growth and takeover potential of the company.