Thanks for the kind words guys.To answer some of the questions,...

Thanks for the kind words guys.

To answer some of the questions, no – I do not see the capital raise of 2m to be a problem. Perhaps when the share price was 0.7cents a share – but with the price likely to be well over 5c a share next week – not much dilution should a further capital raise be required.

To answer the question about the perceived value being so low. This was brought about due to management letting shareholders down badly. Michael Hulmes was placed by Peter Ingram back in 2005/06 to run the ship. Under Michael Hulmes – this is where I experienced most frustrations with URL. I simply was not convinced that Michael was steering URL in the right direction. I had made several heated calls to Peter and noted my frustrations. I simply was not convinced.

When URL had applied for a whopping 360m + CAPEX to build a deluxe copper plant – I could see their intentions were good – but the economic reality of it was a joke. Not unless you were BHP could you get away with such a massive ask. Heck, even the mining equipment was to be bought up for an additional 80m from memory. I was calling up URL and telling them to lease the dam equipment to save costs and to look at a less expensive plant.

The banks declined the finance and URL came up with a revised mine – to go for a 35K PA mine. The share price at that stage took a beating from 22c a share down to 15c a share. I had a few sleepless nights over this – should I bail or hang on? I chose to hang on – only to watch things go from bad to worse. All of a sudden there was debate over the native copper blends – could this be incorporated into the other reserves? Was this possible – if not – reserves were worthless etc. This got the market in a twist again. URL did a good job to prove that this was all rubbish and that the reserves were sound. The market investors sulked. They were upset and angry – there appeared to be a growing resentment.

By this time, the market was starting to cool down – and the opportunity was starting to slip. It was at this stage that Michael left URL and Peter Ingram stepped back in. Peter was intent on trying to get something going – this is when the revised BFS was done using a 25K PA copper project. A long way down from the 50K originally promised. Some holders were enraged that URL management had got things so wrong. How could URL mess it up so badly – how could CUO get their financing in place yet URL could not? Some of us were wishing that CUO had taken us out when they tried to do so.

URL avoided CUO from taking us out by putting in place an agreement where Xstrata could buy up to 51% of URL by 2012 – there is more to this deal – read the Annual Reports – but it effectively blocked CUO from taking us out and also frustrated the market since nothing could really take place with Xstrata sitting like a big fat lemon in the way of progress. I described this to the URL team as the poison pill – it effectively put URL on ice when the market was red hot with copper prices over 3.50 US a pound.

As a result, debt financing was going to be difficult since things were up in the air. I became more and more frustrated since in my opinion, poxy CUO which use to be a third of the price of URL had now taken off and was almost 5 times the price of URL – how could this be when CUO had a 3rd of the resources URL had?

URL has spent several million dollars firming up big reserves, Xstrata has spent several million dollars firming up SEEP reserves – so how the heck can it be worthless - when it was at 0.9c a share? What a joke. I always had said that if I had a spare 10m I would have bought up the company.

Anyhow, you can see that a lot of the crash was a complete and total overreaction, sulking investors, stubborn banks and a blend of terrible management. After the long sulk and dummy spitting, the true value is being rediscovered. The share price should never have gone this low – but it simply went lower since everyone appeared to have lost faith with management.

Now I believe that management will be replaced or perhaps they have finally got it right on the 4th attempt. Time will tell – but on fundamental analysis alone, this stock is worth a lot more than the current price. I am happy to see the snotty guys dropping their stocks, I want more of the in the know type investors holding this stock – about time the smart hold this stock to ensure better value is realized. So with a bit of luck, next week will see another 200m shares purchased, and all of a sudden, you will have a very tightly held valuable company – this is when you will start to see the price rise significantly.

Opinions only.