The problem was with the conference call. It was unfortunate that it ended with Gutnick talking about potential dilution. He didn't confirm nor deny but it left a cloud of doom over it all.

After this big recent drop the company is worth $150M. A few months ago, the company had about $60M in cash and anticipated to spend 15M for rest of 2010.

So if the company is taken down right now and cash distributed to shareholders, we would get $.27 per share. This is without putting any value to holdings of phosphate and other minerals/precious metals.

If the stock drops any lower, it seems that the market has already factored in huge dilution and is pretty much discrediting that there is any rock in the ground.

I think we need some precedents of Chinese partnerships with other junior miners to see how they structured partnerships and debt/equity ratio & what impact it had on shre price. Maybe when I get some time I'll look into it. For a cash rich company with no debt with capital expense payback of only 5 years, couldn't they take on the $700M financing that is needed with large short term debt & low equity?