Advanced Explorations Inc. ADEXF

RE: RP re: Xinxing & Contingency costs

[rpdeluca]

I couldn't agree with you more.  Many have predicted on this board that this project would not go through. There were other projections of $2-3 Billion CAPEX numbers and yucky  (I"ll use a nicer word) OPEX numbers and that there was no way ships would ever be able to come to the port and gigantic ice breakers would be needed.  To come in at under $50 a tonne proves that operating near the water brings substantial savings.  There is no disputing that.  The modular construction as well will bring in substantial savings hence getting the CAPEX number slighlty over $1.2billion.  While the NPV was disappointing, it's what you put into the model that is going to deliver you the numbers.  Remember the use of 104 per tonne alone vs $116 is a swing of half a billion dollars.  The company could have easily used this number and everyone would have seen their $1 billion NPV.  At the end of the day, the company (and I"m including the Chinese influence here big time) delivered a very conservative FS to paint a more realistic picture and where there is opportunity to truly optimize the model in the future.

I'm still one that believes Xinxing will commit and decide to move forward with RB.  Others will not and that is their decision and you have to respect that. At this point, you need to either move on or stick it out. The release of the FS was a big milestone for the company (the release of the FS triggers an increase from 50% ownership of all mineral leases to 75% ownership from RBPLC).  A positive decision to move forward with RB will trigger the remaining 25% and hence 100% ownership of the mineral leases.  More importantly, a positive decision to move forward will trigger a signing of the JV and delivery of funds to AXI which they need.

We can all agree that the Chinese like all of us have this document in their hands.  It will not take long to decide whether they move forward or not.  Good luck to all in whatever decision you make.