china friend or foe, page-4

taboon

unfortunately the future potential SP increases for current shareholders now totally dissappears

What may I ask is the above based on, how can you make this assumption? If this deal goes ahead and its more likely to happen than not. Once finance is achieved once again more likely than not, the S/P will increase very fast. Add to that the price of moly increasing more likely than not and the S/P moves higher again.

Whilst this deal is not the best we could have hoped for, we were always going to have dilution for current holders.
In light of the times in which we find ourselves this is a great outcome.

Some of you may not have fully understood what Hanlong have agreed to.

As part of the deal, Hanlong will provide $60mil loan over 10 years. Hanlong is to arrange a $500mil loan by the end of June 2010.

Should they be unsuccessful then they forfit $45mil of the $60mil, which means they would have then paid approx 94cents a share.

If MOL finds itself in six months time with no finance { most unlikely} it will have $15mil of debt easily paid of from Iron Ore sales. Hanlong would have paid $200mil for just over 50% in a company that could not go forward into production. Does that sound about right, does anyone really think that its a big risk for this mine not to go ahead. I don't think so

In MOL Roadshow Presentation released yesterday they have indicated that they expect moly to rise to $20bl with a three year average of $25bl. Hanlong however are much more bullish with a range of $40 to $60 hench their move into buying a stake in MOL.