taking a good look, page-8

Milesy,

I sold my equity in a broking firm to macquarie then stayed on with them under contract for 2 years. All up i was in the game for 13 years.

respect them? Are well...err.. look there are some seriously smart people there. But it is not a team environment and their mantra wore thin on me.

Ok its 2.26am in the morning and these are my notes which are a work in progress. Feel free to chip in. Sorry my style of writing turned to shite, Im buggered.

Mbila Vendor is continually involved and updated on details of resource conversion findings

Vendor has acknowledged this.

Will engage. Implications of vendor engagement…either have to amend the terms or legally resolve a dead lock.

Constructive so far.

Implications for York deal. York transaction therefore on hold. But will go through.

I’m reading York people got more deals of the same for them. Better to get rid of Mbila deal is what I’m reading between the lines.

Macquarie giving financial advice.

Con notes provider flew to Sth Africa and happy and flexible.

Management says Funding will be ok

The large selling could be the top 20 shareholders being canvassed for an equity raising and off-loading stock for cheap new shares. Could also be the shares the vendor got when the option deal was done? (20m)

Cash position at end of 31/3/13 looks grim especially if you can’t tap the con note facility. So I would say a placement is imminent and that would explain a lot.

Admin costs are high but the management says that they will drop sharply as they have shifted a lot of operations to SA where costs are lower.

Complex tech issues

No certainty to being able to renegotiate. Frankly I hope the Mbila side falls over for good. I reckon the rest of it is pretty smikko and they bit off more than they can chew.

I wouldn’t get worked up at Tarratt leaving.

Probably got pushed because everyone with any brains works in SA. He was head of investor relations a bullshit role for mine and if you are trying to cut costs you got to cut the non- descript roles.

Kangwane project has a NPV of $148m and IRR of 41% (yeeharr)
They have off take companies falling over themselves.
Con note provider gets flown to SA to look at things and pretty comfortable.
Start-up cost $67m to produce 1.2m tonne per year for 1st 11 years
Then you got to throw another $70m at year 12 to go underground

I cannot see where $18m facility has been drawn down.
It cannot be unless conditions are met.

Both parties need to have got all regulatory approval and signed off themselves on the transaction before a draw down is allowed.

And I can’t find what the conditions of the put and call agreement are but I would be surprised if the conditions precedent was a) the specified lender s conditions are met and b) the BFS was robust by some set of metrics.

My view so far a seriously good project dealing in the quality end of coal game. But as always these bloody small mining companies go chasing and landing world class projects with out enough money in the bank.

Ok do a placement ZYL just do it, its nausiating looking at your quarterly. And raise enough to have a legal fight if you must.