Plough,Assuming we accept the numbers (has anybody looked at the...

Plough,

Assuming we accept the numbers (has anybody looked at the USD exchange rate recently?) on Keysbrook there is still the issue of the dilution that is going to have to occur to get this thing up.

The soon to be released quarterly will reveal how little cash is left and no doubt a 15% placement is imminent, meaning that current issued capital will blow out to around 165m shares.

Given the capital needs for Kalimantan and then Keysbrook (assuming Harts gets buried) and in the light of the rate this mob burn money (including some pretty expensive directors) then it will have to end out at around 200m to 250m shares on issue by the time they get Keysbrook underway, ignoring dilution from options (expect the directors to be looking for a well priced, big options top up at the AGM).

They reckon $10m EBITDA for 8 years on Keysbrook, so allowing for interest tax and overheads, lets say a net $6m pa available for shareholders or $48m over the full 8 years. Net distribution ex keysbrook of 24 cents over 200m shares in 8 years or 19 cents over 250m shares over 8 years.

The problem has been the very average capital management which will continue to haunt them.

Gazzard deserves praise as he has worked hard, but has been badly let down by others.

Still at last some positive news for the beleaguered shareholders