NML is due its interrim results now, last year it was the 28th of this month.

They are setting up a new site to explore/research/analyse and all the equipment to do this should be on site now, and drilling should start soon, all this extra news should be covered in the interims.

does anyone have any further positive views on this company ??

New Millennium Resources Ltd
31 March 2005



New Millennium Resources Limited
('NML' or the 'Company')

Financial Report For The Half-Year ended 31 December 2004

Directors' report

The directors submit the financial report of the economic entity for the
half-year ended 31December 2004.

Directors

The names of directors who held office during or since the end of the half-year:

Senator David Johnston

Datuk Fung-Chee Lim

Dato' Azizi Yom Ahmad

Chong-Kiat Lim

Nikolajs Zuks (ceased being a director on 29 November 2004)

John M Cross

Shane M Healy

Principal activities

The principal activities of the entity during the course of the half year were
diamond mining via the controlled entity, Angola Resources Pty Ltd, in Angola
and diamond exploration via the controlled entity Greenland Minerals Pty Ltd in
Greenland in JV with Hudson Resources Inc.

Results of operations

The loss after tax for the half year ended 31 December 2004 was $2,282,879
(2003:$308,196).

Review of Operations

Angola

Through its wholly owned subsidiary, Angola Resources Pty Ltd, the Company is in
a joint venture with Endiama (51%) the Angolan Government owned diamond monopoly
and Mombo Lda (15%), to explore and extract alluvial diamonds at Lapi in Lunda
Norde province. Final exploration activities have commenced in Angola for
diamonds after a three month delay due to heavy seasonal rains in the area. A
full complement of mining plant and equipment has now arrived on site. Base camp
has been established and infrastructure including roads and bridges have been
built in preparation for production.

Greenland

During the year the Company incorporated a separate and wholly owned entity,
Greenland Minerals Pty Ltd, into which all Greenland assets were transferred.
The Company has entered into a joint venture with Hudson Resources Inc of Canada
to explore for kimberlite diamonds on its concession at Sarfartoq. The terms of
the JV include a 20% free carry for the Company. Hudson to date has been
successful in discovering encouraging signs of diamonds in the area and is
continuing to carry out further exploration.

Subsequent events

Other than as disclosed in note 6 to the financial statements, no other matters
or circumstances have arisen since the end of the half year which significantly
affected or may significantly affect the operations of the economic entity, the
results of those operations, or the state of affairs of the economic entity in
future financial years.

Directors' report

Likely future events

The Angolan diamond project will move from exploration phase to production phase
by June 2005. Heavy rains in the area of Angola have severely set back the
production schedule. By June 2005 the Company will be in a position to make
medium to long term forecasts as to cash flows and profits. The Company is also
confident that its asset in Greenland and its JV with Hudson Resources will be
of benefit and is encouraged by the work carried out to date.
It is the Company's policy to acquire further diamond concessions in the near
future should opportunities present themselves.

Director
----------------------------------------
John Michael Cross - Managing Director



CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE
FOR THE HALF-YEAR ENDED 31 DECEMBER 2004
Economic Entity
Note 31.12.04 31.12.03
$ $

Revenues from ordinary activities 116,611 414,138
Administration (142,421) (80,184)
Cost of sale of freehold land and buildings - (407,271)
Exploration expenditure (274,827) -
Borrowing costs (35,190) (3,960)
Insurance (34,109) (17,201)
Depreciation (208,735) (32,177)
Consultancy and professional fees (427,129) -
Directors' remuneration and benefits (660,834) (130,800)
Travelling expenses (242,651) -
Employee benefits (32,290) (33,187)
Security and related costs (210,678) -
Other expenses from ordinary activities (130,626) (17,554)
------- -------
Loss from ordinary activities before income
tax expense 2 (2,282,879) (308,196)
Income tax expense relating to ordinary - -
activities ------- -------
Loss from ordinary activities after income
tax expense 10 (2,282,879) (308,196)
------- -------
Basic loss per share (cents per share) 11 (0.02) (0.48)

Diluted loss per share has not been disclosed as the notional exercise of options
over ordinary shares would not show an inferior view of the basic loss per share
and as such they are not considered dilutive.

The statement of financial performance is to be read in conjunction with the
attached notes to the half-year financial statements.


CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2004

Economic Entity
Note 31.12.04 30.6.04
$ $

CURRENT ASSETS
Cash assets 6 154,371 53,372
Receivables 14,905 9,314
Other 54,299 34,109
-------- --------
TOTAL CURRENT ASSETS 223,575 96,795
-------- --------
NON-CURRENT ASSETS
Exploration, evaluation and development
expenditure 2,640,451 2,170,984
Property, plant and equipment 2,470,045 428,579
Other 10,125 10,125
-------- --------
TOTAL NON-CURRENT ASSETS 5,120,621 2,609,688
-------- --------
TOTAL ASSETS 5,344,196 2,706,483
-------- --------
CURRENT LIABILITIES
Payables 7 2,550,295 1,055,340
Interest bearing liabilities - 28,136
Provisions 3,370 9,370
-------- --------
TOTAL CURRENT LIABILITIES 2,553,665 1,092,846
-------- --------
TOTAL LIABILITIES 2,553,665 1,092,846
-------- --------
NET ASSETS 2,790,531 1,613,637
-------- --------
EQUITY
Contributed equity 8 17,414,252 14,595,358
Options reserve 9 640,879 -
Accumulated losses 10 (15,264,600) (12,981,721)
-------- --------
TOTAL EQUITY 2,790,531 1,613,637
-------- --------

The statement of financial position is to be read in conjunction with the
attached notes to the half-year financial statements.




CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE HALF-YEAR ENDED 31 DECEMBER 2004

Economic Entity
31.12.04 31.12.03
$ $

CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers - 3,626
Payments to suppliers and employees (1,351,635) (188,879)
Interest received 5,187 5,512
Borrowing costs - interest paid (35,190) (2,729)
Borrowing costs - other - (1,231)
------- -------
Net cash (used in) operating activities (1,381,638) (183,701)
------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of non-current assets - 392,859
Purchase of non-current assets (634,637) (104,886)
Payment for exploration expenditure (104,167) (24,563)
Loan to Angola Resources Pty Ltd - (378,065)
------- -------
Net cash (used in) investing activities (738,804) (114,655)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings - 390,700
Proceeds from share issues 2,254,000 -
Payment of costs related to capital raising (9,530) -
Repayment of borrowings (23,029) (266,000)
------- -------
Net cash provided by financing activities 2,221,441 124,700
------- -------
Net increase (decrease) in cash held 100,999 (173,656)
Cash at 1 July 2004 53,372 307,732
------- -------
Cash at 31 December 2004 154,371 134,076
------- -------

The statement of cash flows is to be read in conjunction with the attached notes
to the half-year financial statements.


Notes to the financial statements for the
half-year ended 31 December 2004

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

(a) BASIS OF PREPARATION

The half-year consolidated financial statements are a general purpose
financial report prepared in accordance with the requirements of the
Corporations Act 2001, Accounting Standard AASB 1029: Interim Financial
Reporting, Urgent Issues Group Consensus Views and other authoritative
pronouncements of the Australian Accounting Standards Board.

The financial report covers the economic entity of New Millennium Resources
Limited and its controlled entities Angola Resources Pty Ltd and Greenland
Minerals Pty Ltd. New Millennium Resources Limited is a company incorporated
and domiciled in Australia and listed on the Alternative Investment Market
('AIM') in the United Kingdom. Unless otherwise stated, all figures are in
Australian dollars.

It is recommended that this financial report be read in conjunction with the
annual financial report for the year ended 30 June 2004 and any public
announcements made by New Millennium Resources Ltd and its controlled entities
during the half-year in accordance with continuous disclosure requirements
arising under the Corporations Act 2001.

The accounting policies have been consistently applied by the entities in the
economic entity and are consistent with those applied in the 30 June 2004
annual report except as disclosed in note 12.

The half-year report does not include full disclosures of the type normally
included in an annual financial report.

(b) GOING CONCERN

The financial report has been prepared on the going concern basis, which
contemplates continuity of normal business activities and realisation of
assets and settlement of liabilities in the ordinary course of business. The
going concern of the economic entity is dependant upon the economic entity
obtaining additional funds through successful capital raising and/or the
future profitability from successful exploitation of its mineral projects.
The directors continue to monitor the ongoing funding requirements of the
economic entity and are at present considering various funding alternatives to
bring its mineral projects to successful exploitation.

The directors are confident that sufficient funding will be secured to enable
the consolidated entity to continue as a going concern and as such are of the
opinion that the financial report has been appropriately prepared on a going
concern basis.

Status of company

On 29 November 2004 the company changed its status from a no liability company
to that of a public limited company.

Economic Entity
NOTE 2: LOSS FROM ORDINARY ACTIVITIES 31.12.04 31.12.03
$ $

The following revenue and expense items are relevant in
explaining the financial performance for the interim
period:

Proceeds on sale of freehold land and buildings - 405,000
Carrying amount of freehold land and buildings sold - (407,271)
-------- --------
Net loss on disposal of non-current assets - (2,271)
-------- --------

Interest received 5,187 5,512
Write back of accrual no longer required 25,274 -
Net exchange gain 86,150 -


Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 3: ACQUISITION AND DISPOSAL OF SUBSIDIARIES

On 4 August 2004, the Company incorporated a new wholly owned subsidiary
'Greenland Minerals Pty Ltd' to hold all of the group's assets and operations in
Greenland.

NOTE 4: SEGMENT REPORTING

Business segments

The economic entity operates in only one business segment being the mineral
exploration industry. Therefore, the statement of financial performance and
statement of financial position as reported on pages 3 and 4 cover the business
segment of the Company.

The economic entity's business segments operate geographically as follows:

Australia Mineral exploration industry

Greenland Mineral exploration industry

Angola Mineral exploration industry


Geographical segments

Geographical
location Segment Revenue Segment Result Segment Assets Segment Liabilities
31 31 31 December 31 31 30 June 31 December 30 June
December December 2004 December December 2004 $ 2004 2004
2004 2003 $ 2003 2004 $ $
$ $ $ $

Australia 116,611 414,138 (1,046,614) (274,909) 234,615 128,735 1,018,796 743,535

Angola - - (1,162,547) - 4,821,230 2,289,397 1,188,958 57,953

Greenland - - (73,718) (33,287) 288,351 288,351 345,911 291,358

116,611 414,138 (2,282,879) (308,196) 5,344,196 2,706,483 2,553,665 1,092,846


NOTE 5: CONTINGENT LIABILITIES

The Government of Greenland Bureau of Minerals and Petroleum will conduct a
comprehensive evaluation and assessment on the cost to clean up the Company's
exploration areas in Greenland. In the directors' opinion, no cash outlay will
arise for the Company as these costs will be settled in lieu by way of
surrendering the Company's campsite and equipment. In the event that the
authority demands cash compensation or any rehabilitation work to be performed,
a liability for rehabilitation will then come into existence. At this stage, no
quantification is made as the cost can not be reliably measured.

In the event that a successful take over of the Company or a change in the
control of the company occurs, the employment contracts with John Cross and
Shane Healy will immediately terminate and the Company will pay out the balance
of any remuneration payable under both contracts up to and including 19 April
2007. As at 31 December 2004, the Company has remuneration commitments of
$936,700 payable to both executive directors.

In the opinion of the Directors, other than the above, there were no contingent
liabilities at 31 December 2004 and subsequent to the date of this report.

Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 6: EVENTS SUBSEQUENT TO REPORTING DATE

Subsequent to reporting date the following events had occurred:-

The economic entity has received a draw down of US$1.25m (A$1.67m) in the form
of a convertible note which has been converted into 16,666,667 shares.
The debt payable to Badenhorst amounting to $825,300 in regard to the
acquisition of assets in Angola has been settled by way of issue 8,253,000
ordinary shares at A$0.10 each in the Company.

Directors' fees and loans amounting to $386,527 have been satisfied by way of
issue 3,865,270 ordinary shares at A$0.10 each in the Company.
Other than the above, there has not been in the interval between 31 December
2004 and the date of this report any item, transaction or event of a material
and unusual nature likely, in the opinion of the directors of the Company, to
affect significantly the operations of the economic entity, the results of those
operations, or the state of affairs of the economic entity in future financial
years.

NOTE 7: PAYABLES

31 December 30 June
2004 2004
$ $

Trade and other payables 1,164,356 668,813
Accrued directors' fees (i) 466,527 386,527
Payable to Badenhost Combine (ii) 825,300 -
Capital raising costs payable 94,112 -
--------- --------
2,550,295 1,055,340
--------- --------

(i) Subsequent to 31 December 2004 directors' fees payable
amounting to $386,527 have been satisfied by way of an issue of 3,865,270
ordinary shares in the company.

(ii) Subsequent to 31 December 2004 the debt payable to
Badenhorst Combine amounting to $825,300 has been satisfied by way of an issue
of 8,253,000 ordinary shares in the company.

Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 8: CONTRIBUTED EQUITY

31 December 30 June
2004 2004
$ $
136,571,762 (2003: 107,679,495) fully paid ordinary
shares 17,414,252 14,595,358
--------- ---------

Contributed equity at the beginning of the period 14,595,358 11,186,980

7,814,000 shares issued at $0.05 per share in
settlement of loans from directors - 390,700

21,043,327 shares issued at $0.07 per share on 4
February 2004 by way of placement - 1,473,033

18,000,000 shares issued at $0.089 per share on 17
January 2004 as part of the consideration for

acquisition of the issued capital of Angola
Resources Pty Ltd - 1,602,249

5,040,000 shares issued at $0.14 per share on 4
August 2004 re acquisition of mining equipment from
Badenhorst Combine 710,640 -

7,352,267 shares issued at $0.096 per share on 11
August 2004 for working capital 704,000 -

16,028,214 shares issued at $0.097 per share on 5
October 2004 for working capital 1,550,000 -

471,786 shares issued at $0.10 per share on 5
October 2004 in lieu of placement fees 47,178

Less: Capital raising costs arising from issues (192,924) (57,604)
--------- ---------
17,414,252 14,595,358
--------- ---------

Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 9: OPTIONS RESERVE

Option-based payment

During the period ended 31 December 2004, the company made six option based
payments:

Type of Directors Executive Directors Payment of Acquisition Payment of
Arrangement Incentive Employment Remuneration Consulting Fees Cost of Capital Raising
Options Plan Agreement Controlled Costs
Entity

Date of 29 November 29 November 12 January 2004 29 November 17 January 29 November
grant 2004 2004 2004 2004 2004

Number 11,000,000 4,000,000 8,000,000 1,500,000 10,000,000 1,445,929
granted

Exercise 4 pence 8 pence A$0.20 12 - 33 pence A$0.20 A$0.20
price

Last vesting 19 April 2007 19 April 2007 N/A 18 November N/A N/A
date 2006

Expiry date 3 years after 19 April 2009 11 January 2007 18 November 11 January 2007 28 February
vesting 2006 2006

Vesting
conditions (1) (2) Vested during (3) Vested during Vested during
the period the period the period

(1) The following options will be vested if the company's share price on the
London Stock Exchange Alternative Investment Market ('AIM') has reached a
certain minimum base price in any three month period up to 19 April 2007:

NUMBER OF OPTIONS BASE PRICE

2,000,000 40 pence
2,000,000 45 pence
2,000,000 50 pence
5,000,000 55 pence

(2) The following options will be vested if the company's share price on the
London Stock Exchange Alternative Investment Market ('AIM') has reached a
certain minimum base price in any three month period up to 19 April 2007:

NUMBER OF OPTIONS BASE PRICE

1,000,000 Vested during the year
1,000,000 16 pence
1,000,000 24 pence
1,000,000 32 pence

(3) The following options will be vested if the company's share price on the
London Stock Exchange Alternative Investment Market ('AIM') has reached a
certain minimum base price in any three months during the exercise period:

NUMBER OF OPTIONS BASE PRICE EXERCISE PRICE

400,000 16 pence 12 pence
300,000 24 pence 18 pence
300,000 32 pence 24 pence
500,000 45 pence 45 pence

Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 9: OPTIONS RESERVE (CONT'D)

Option Amount Recognised During the Period Unamortised Amount Fair Value
Reserve
$ $ $

Directors Share Option
Plan 340 8,920 9,260

Executive Employment
Plan 72,118 32,538 104,656

Directors' Remuneration 240,824 - 240,824

Payment of Consulting Fees 292 6,248 6,540

Acquisition Cost of
Controlled Entity 285,200 - 285,200

Payment of Capital
Raising Costs 42,105 - 42,105
------------ ------------------------------------------------ --------------
640,879 47,706 688,585
------------ ------------------------------------------------ --------------

NOTE 10: ACCUMULATED 31 December 31 December
LOSSES 2004 2003
$ $

Accumulated losses at the beginning of the half-year (12,981,721) (5,162,998)

Losses from ordinary activities during the period (2,282,879) (308,196)
------------------------------------------------------ ----------
Accumulated losses at the end of the half year (15,264,600) (5,471,194)
------------------------------------------------------ ----------

NOTE 11: LOSS PER SHARE

Basic loss per share (cents per share) (0.02) (0.48)

Weighted average number of ordinary shares outstanding during the half year used
in calculation of basic loss-per share 125,236,463 66,709,950
------------------------------------------------------ -------

NOTE 12: CHANGE IN ACCOUNTING POLICY

During the half year ended 31 December 2004, the economic entity changed its
accounting policy with regard to accounting for the issue of options. In terms
of the new accounting policy, the economic entity now expenses over the vesting
period the fair value of options issued to employees and for services rendered.
Options used for the acquisition of assets are valued at fair value and
capitalised as part of the acquisition cost of the asset. This policy complies
in all material respects with the requirements of IFRS 2 'Share Based Payments'.


Notes to the financial statements
for the half-year ended 31 December 2004

NOTE 12: CHANGE IN ACCOUNTING POLICY (CONT'D)

The restatement of the economic entity's accumulated losses, option reserve,
current statement of financial performance and other affected financial items is
set out below showing the information that would have been disclosed had the new
accounting policy always applied:

Accumulated Current half Option Exploration Contributed
losses year loss reserve and equities
evaluation
expenditure
(share raising
costs)

31 30 31 31 31 30 31 30 31 30
December June December December December June December June December June
2004 2004 2004 2003 2004 2004 2004 2004 2004 2004
$ $ $ $ $ $ $ $ $ $


Before the effect of
the change in
accounting
policy at the
end of financial
period (14,951,026) (12,981,721) (2,210,129) (308,196) - - 2,355,251 2,170,984 17,456,357 14,595,358

Effect of the
change in accounting
policy (313,574) (240,824) (72,750) - 640,879 526,024 285,200 285,200 (42,105) -

After the effect of
the change in
accounting policy at
the end of the
financial
period (15,264,600) (13,222,545) (2,282,879) (308,196)640,879 526,024 2,640,451 2,456,184 17,414,252 14,595,358

Directors' declaration

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 3 to 12:

a. comply with Accounting Standard AASB 1029: Interim Financial
Reporting and the Corporations Regulations; and

b. give a true and fair view of the economic entity's financial
position as at 31 December 2004 and of its performance for the half
year ended on that date.

2. as set out in Note 1(b), there are reasonable grounds to believe that the
Company will be able to pay its debts as when they become due and
payable.

This declaration is made in accordance with a resolution of the Board of
Directors.

Director

SHANE M HEALY
FINANCE DIRECTOR AND CHIEF FINANCIAL OFFICER


Contact:

New Millennium Resources Limited

John M. Cross (Managing Director)

Tel: +61 414 375 758 Tel:


jcross@new-millennium.com.au

Shane M. Healy (Finance Director)

Tel: +61 414 809 010


shealy@new-millennium.com.au

Daniel Stewart & Company Plc

Marc Young

Tel: +44 (0)207 374 6789

St. Swithin's PR

Gary Middleton

Tel: +44 (0)795 160 3289

This information is provided by RNS
The company news service from the London Stock Exchange

The world has been struck dumb by the news that they are 3 months behind - just a single sell of 95,000 at 3.50p!! Although the marked price is still 4.00/5.00. Must say I am concerned by the mere Aus$154k cash on the BS compared to the annual operating expenses of Aus$2.2m (don't all those directors do well!). So they are certainly going to need to raise cash very soon - unless they pay all their creditors with shares in our company, which I don't suppose makes much difference to us in the end who gets to share future profits.

So I have not topped up on NML today, but am looking to pick up a few of its its twin EPD which also published interims today saying they were about to start production end of April. It's totally blue today - both trades so far that is!

I get the feeling we've finished book-squaring amongst the professionals for this quarter - maybe leaves just a few CGT planners amongst the amateur brethren to place their sells by 5th April.

SD

stockdog,

I agree, these results are diappointing, they clearly will need to raise cash quickly IMHO, (I couldn't believe the BS figure!) and thay have again failed to deliver on a commitment to commence mining "by March 2005", buy a couple of months,

Interesting that none of the regulars on ADVFN have posted this morning, so they either knew in advance, or are indeed "struck dumb" as you suggest.

One poster has said he has sold 100,000 @ 4p, which is not showing yet, so there MAY be more sales to come. The 3.5p figure for the 95,000 sell does not inspire confidence!

I think they will announce a placing or fundraising very soon.

If it's a placing, probably at 3p, no more IMHO.

EPD as you rightly say are due to comence mining soon, and I expect the price in the 70's IF they commence on time, more if any dwecent news from Finland.

And Firestone are reporting today, only interims, but they will be updating the market on their latest news, another one to watch IMHO! (I hold FDI and EPD)

SD and Andy...we all knew that NML would be late because of the rains. It is no suprise to see that NML are delayed. At least they are getting started though. I think hold on and wait. There is no point in selling at the current price. Although if it goes lower or there is a low placing I will buy more even though I don't have spare cash...I will find some somehow.
Di

Di, I agree that certainty for the end of June start is very helpful to calm jitters. But we do need an announcement soon as to how they will pay the wages between now and then. That second bit of news will then firmly underpin the base price from which it can only go up in due course. No intention of selling this side of the U-tube.

I haven't checked (sorry) but am I right that NML's kimberlite has a higher grade than EFD's rather meagre 0.69 carats per tonne on the Satellite and only 0.16 carats per tonne on the Main Pipe. So it may do better in the long run.

Andy - you'll have to carry the load on Firestone for me, I don't have the resources to include that one too. Maybe if I could, I could spend my year cross-trading between them at different stages of their cycles going ever upwards at each turn. I imagine three stocks gives you the edge over just two for that game.

SD

Maybe the idea SD is that the workers get their wages and the directors have to wait until they start making money. After all the workers only earnt 32K in the whole year!!! What would be really nice is that in their further exploration they find some big diamonds and then make a share issue as that would do wonders for the price:-)

The directors have been helping themselves to shares in lieu of pay according to the accounts at Aus10c a share which is pretty much the bid price of UK4p. Bet the workers don't have that option.

Yes, a few yellow rocks at $10k each would be great news.

Di,

To be fair, their RNs in mid December said they would commence in March, "weather permitting", and now it is June.

In fact in the last year, they have postponed startup from last April (old management) through the "hit the ground running" in September, to year end, then March, and now June. IMHO this is not impressive!

Two of the three sells this morning are at 3.5p, so hold and wait may indeed be better than selling at such a low price IMO.

I strongly believe they will have a placing at 2.5 - 3p maximum.


Stockdog,

I'm not sure they have done any work on their kimberlite yet, so I don't think they can possibly know a grade for it.

Their resources in Angola can be viewed here;

http://www.new-millennium.com.au/ang_resources.php


I don't trade my Firestone at all, only add, as I consider them to be a strong long term hold.

I MAY trade between EPD and NML, provided current timescales are adhered to, indeed NML's June announcement today should in fact ensure that I can cross trade between EPD if they start in April/May, and NML if they start in June.

Directors taking shares in lieue of pay means that they can sell in the market to realise the cash, so not quite as good a sign as we might think.

I don't think it's a good sign at all that director's who have failed to bring about commencement of trading give themselves access to future profits in lieu of cash salaries. Since it is entirely their own doing, at best they should acquire loan stock with a 10 year gilts coupon.

Is there any real control over how much they take in this way?

NML's website quotes a median grade of 0.627 carats per cubic metre. Now assuming that a cubic metre of rock/soil/kimberlite has a similar specific gravity to water, a cubic metre (which is 1000 litres) wieghs 1000 kg which is a tonne, so its about 0.627 carats per tonne - probably slightly less since we know rocks sink and are therefore heavier than water, thus a cubic metre weiights more than a tonne, so there are 0.627 carats in more than a tonne, in other words less than 0.627 carats in a tonne - let's say about 0.60 carats per tonne - so slightly less than the Satellite and nearly 4 times the Main Pipe in EPD. Please feel free to check my maths - factors of 1,000 can be damn tricky, Carruthers.

Interesting pair of stocks to measure each other by.

SD

Hoy, folk, we seem to have moved to the half-empty brigade. Well, I'm a half full sort of fellow, so here's my positive take on the interim report:

First, Note 6 points to a draw down of US$1.25m since year end. There is an underlying assumption that this funding sees them into production.

Second, with regard to production: (a) final exploration activities have commenced; (b) full complement of mining plant and heavy equipment has arrived on site; (c) base camp has been established and infrastructure including roads and bridges have been built in preparation for production; (d) the project will move from exploration phase to production phase by June; (e) by June the Company will be in a position to make medium to long term forecasts as to cash flows and profits.

So some good work has been done, lessons have been painfully learnt about the environment, cash is adequate to take company into production. Best of all, we will have nice juicy numbers in June that could take sp significantly higher. So what's the problem? If there is a problem, it is also an opportunity!

Eric, TEO

Well eric, if mine's half empty and your's is half full - put 'em together and what have you got - bibbidy bobbidy boo (you know that acutally o=won the Oscar for best song that year - incredible).

We're only having a mild go - but yes, I did overlook that draw down - who from by the way? Anyway it will see them through to production, hopefully to revenue earning as well. How long does it take to sned a diamond to market?

SD

Eric,

Well I not so sure they have sufficient funds, and I think they will need more, particulary as June is now mooted as the start of production.

The assumption they that the $1.25 million will see them through would surely have been made with a March rather than June start in mind?, as that was their declaration at the time. So the money has to stretch 2 -3 months more, and SH told me $150,000 cashburn per month last November, and that will build as production nears.

They have also made capex equipment purchses since then.

Shane Healy was here last couple of weeks, and did the rounds in the city, and that leads me to believe he was looking for funding,but that's only my opinion.

Base camp was elready established last November, I saw the photos.

They have been doing sampling and trenching since last October, and have only reported 1 out of 5 sites as being completed.

It has not been too well received on ADVFN either, I know some large holders there.

Sorry but I cannot see anything to be optimistic about in today's announcement, quite the contrary in fact.

Andy...The ADVFN board is not any more negative than this board. In fact most are saying that the project is sound just a case of when it will commence. If and it is an if there is another placing most people would be happy to get on board and it seems that some of the sells today were actually buys.
Basically the June dat is a setback but nothing more and patience IMHO will be rewarded.
Di

Here is an example of a supposedly negative person on the other side;

'>Crosbie3
Exactly......this is a setback, but it is only temporary. I don't forsee many delays in the dry season.

They should also be able to prepare for the following wet season. I'd be surprised if they didn't take measures, such as redistribute the tailings/gravel as hardcore for the tracks, to give them some firm ground to move on.

I just hope that some of you (the long termers) manage to get in on that placing, to offset the disappointment of the delay. I also wonder if some of the people (in the know) that posted here so regularly, was not taking advantage of advance knowledge to sell his shares and pick up new ones in the placing. He hasn't posted in a while, and whilst I accept that he might be busy, I seem to remember that he was a beneficiary of cheap shares the last time.'

Di,

Well I have posted on that thread for nearly a year, and, IMHO, they are, shall we say, "less than enthusiastic" IMHO!

To analyse the post you quote, with no direspect to the poster Crosbie3, his setback comment was echoed by others in September, November, and early 2005 by others on the thread.

He then goes on to suggest the tailings can be utilised to help create solid ground for moving around on, but is there any basis to this suggestion? would it work? Is movement the problem?

At best he is hoping, suggesting, but unless he has any experience of alluvial mining in an area similar, that is all it is.

with regard to the trades, andything above 4p is indeed a buy, IMHO, I was quoted 4.25p to buy earlier, when the offer was 5p on the monitor!

Of course, you wonder why you can buy at such a discount to the advertised offer, I have never before been offered such a discount to the advertised price.

Some suggestions on the other side seem to indicate a placing is already underway, and if these are correct, I wonder at what price?

Di,

Interesting, Commdirect are now quoting 4 - 4.13, so it's actually cheaper to buy now rather then this morning!

To be fair, the bid is now much better (0.5p) than this morning, so you can achieve a much better sell price.

Helpful posts. I accept the likelihood of a further placing; it would probably be irresponsible not to to that as the monthly cash burn would make it too close for comfort. Also explains the drop in price during Healy visit. 4p would appear to be a likely price.

But I think it is wrong to discount the current activities, described as 'final exploration activities'. One result is that, by June, the company will be 'in a position to make medium to long term forecasts as to cash flows and profits.' I can't see other than making the present cap. look mighty low.

Eric

When we get to end June and the first little sparklers are winging their way to de Beers vaults there will be a big reaction in the shares, how sustained who knows, but it'll be big on the day.

If they raise cash, whioch would not surprise me, I'd say they would go for something like Aus$1.25 to double what they have already to give them a 12 month burn from 31st December on straight operating costs, reduced to 6-9 months by the heavier cash burden of final gearing up for mining. Priced at 3.50p, that's Aus8.75c = 14,285,714m shares added to 160,240,000 in issue today at a mid price of 4.50p, makes a total of 174,525,714m shares at an average of 4.418p - hardly a major dilution in value for existing holders given that it gets them to the payload.

The shame is, the need for certainty about raising the full amount will preclude any rights offer to existing holders and it willgo to lucky placees as usual.

SD

SD: helpful figures that are much better than my back of envelope stuff. 10%, say, placing is hardly near or there and not worth a rights issue. Something like the SEO placing and less than that of GMC, say. MLS did include a rights component in a larger fund-raising but that was only 1 for 10 and hardly worth the bother. As with the other instances, the placing gives a support level and at this level is really a benefit, apart from the confidence that it gives: (a) they can complete the task; (b) financial institutions, party to behind the veil detail, have provided their backing on a risk basis.

Eric

Another recent fund-raising for exactly thed same purpose - delayed commissioning of plant, cash needed to get to full production was BFC recently who did make part of it a rights issue at a nice discount - good for them (and for me of course!)

Of course, it's probably v. expensive to include small shareholders in the fun, but it would be nice.

SD

By gum! I hope he raised the funds alright because the falling sp makes the number of shares required for a given sum higher all the time. What fun, sd? we are talking about hard smackers and not tickle tums!

Eric