Ann: SFG AAM Legune Completion and App 3B, page-24

Hi Martin,

I'm a long term shareholder in SFG/COZ. 

I've had my ups and downs in emotions with the share price over the years, but i am convinced that we are now entering the home straight wrt the funding announcements that will finally see the project developed. 

The company, and management team have been extremely tenacious in ticking off some extremely difficult issues. Those include the negotiating of an acceptable ILUA, the leasing of Legune station, the negotiations surrounding Nissui.

Whilst the timeframe for the project SeaDragon has blown out, imo the work behind the scenes has been exceptional by those concerned.  I'd imagine that executive management have been just as frustrated at times, but their insistence to achieve the best result for the long term, on a world class  long life project, will ultimately bear fruit. 

As a shareholder its easy to complain about the share price, because we have no accountability whatsoever. We can sell shares and move on. Executive management have been and continue to be accountable for each and every decision,  AND that team have considerable skin in the game. That makes my decision to continue to hold shares an easy one!

And from my understanding executive management take a considerable level of care and responsibility to ensure the local people, be it indigenous folk or other, benefit from the development of the project, at the same time SFG will also benefit.

Past year losses really have no bearing on the profitability of PSD, and in this regard i compare it more akin to an explorer - past exploration expensed as incurred - so far PSD development costs exceed around $70 million. 

IIn terms of pricing of the prawns I'm no expert, but if you read the literature re prawn and fish supply/demand and add to that the benefits of Australian branding, I suggest PSD will be highly profitable.

If you can't sleep easy at night then SFG might solve your problem - just replace sheep with prawns!