what a pile of schist, page-2

Bacci,

Its pretty hard to get a positive comment out of you on this stock. I thought today's announcement from the company was positive. You have been putting fear into the readers for some time about the likelihood of an imminent capital raising yet in this announcement the company says that it has secured an extension to its banking facilities through to March 2013. Surely if the bank was concerned about any short term problems it wouldn't be extending the loans out to three years. I think it is safe to say that a capital raising is not on the agenda at all.

The company reaffirmed its previous figures and generally for a company that has been under considerable pressure that is a positive. They indicated that soda ash sales are recovering to more normal levels and that the bicarb sales are recovering too. They told us that cash flow rates will improve in 2011 due to lower overburden extraction rates and finally that the company will not be effected by the Minerals Resource Rent Tax.

I must say I am starting to wonder who it is who has been talking schist.

As to the "fairy tale" comment from Jay I am not sure what his problem is. Windimurra went into receivership, Compass mining into administration and the Goro project seems to have gone into limbo. I think Penrice was pretty unlucky to have lost three mining contracts in this way and with the world recovery well under way I think there is only good news ahead from that sector.

When the company first announced its downgrade in April, there was considerable selling of the shares in the days prior to the announcement and that concerned me both as to the possible leaking of the report and the accompanying suggestion that insiders were leaving. It is interesting that the rise in recent weeks seems to have been caused predominantly by the disappearance of sellers. Even when the shares approached 40c there were few sellers around. This augers well for the next couple of months in my view.

GPASAS