18 share tips - 5 may 2014, page-5

Don’t know how this could possibly be rated a buy. I took a small punt on this company without doing too much research… gold producer, imminent production, 2m market cap. Sounded like it was worth a small risk with cash about to come in the door.

Fact is we have no power what so ever. The entire company is based on an 18% investment in Goldsmith. This would be fine it was part of a larger investment/operational portfolio - except it's not, and we still have the operational expenses of a listed company, CEO, board, etc, and appear to have no say in how Goldsmith is run. Or even know what Goldsmith is doing at any point in time other than ‘imminent production’.

I’ve just had a quick look through previous announcements re production and it makes for some quite depressing reading. At one point in October last year management stated CGU “remains on track to production radiness in coming weeks.” Coming weeks!!

I don’t understand how we can get it so wrong, so many times. I have no faith what so ever that we will be operational by the end of June based on the track record of previous announcements dating back to October 2012:

23/10/2012 Based on current scheduling, this plant and tailings reprocessing project is expected to be producing gold-loaded carbon for sale by the end of 2012

14/11/2012 we anticipate post February 2013…. Commissioners' total investment in Peru this year should be recouped next calendar year.

21/12/2012 double the rate of production the the Mollehuaca to 60,000 tonnes per annum by the end of March 2013

22/01/2013 Production ready by March 2013

30/01/2013 scheduled to commence in March 2013.

13/03/2013 forecast to commence in April 2013.

08/04/2013 production ramping up to full (CIL) capacity in May, delivering CGU its maiden gold sales and revenue.

16/04/2013 Gold production commencing May 2013

30/04/2013 production from the Mollehuaca Gold Plant expected to commence in the coming weeks.

24/05/2013 …very close to production rediness, with plant infrastructure 95% completed.

30/05/2013 Gold production commencing current quarter

12/06/2013 Production readiness of the Mollehuaca Plant is drawing nearer…

24/07/2013 CGU is very close to achieving first gold production

30/07/2013 commence operations in the current quarter..

30/09/2013 completion of the tailings field is expected within the next five weeks….Gold production from Mollehuaca is scheduled to commence immediately after the tailings field is completed.

31/10/2013 remains on track to production radiness in coming weeks.

13/11/2013 commissioning ore is due to arrive at site in the next two weeks to commence production trials

18/11/2013 Production at the Goldsmith satellite mining and minerals processing project is imminent now that the plant construction is 95% complete

28/11/2013 The company is about to commence gold production

31/01/2014 Maiden gold processing on track for late in March 2014 quarter

13/03/2014 forecast to commence in April-May 2014

15/04/2014 Coming into production in mid-2014