Ann: Capital Raising Presentation December 2018, page-51

Afternoon Guys,

Esh, i think you’re over reacting here mate unless you’ve gotten too far over your skis.

As per others, look at the state of the sector. What were you expecting?

North American juniors have the strategy you are talking about(collectively), which is drill a target then wait for TO. Aussie developers strategy is to build a mine.

Since the 2011 bear market started the Aussies have far outperformed the Canadian and American miners with their strategy.

At the recent London 121 conference, notes i have seen summarizing the large funders (JPMorgan, Blackrock, Investec, etc) ALL expressed the view that there was no desire to invest in developers as FCF generating producers were so cheap.

This means for WAF that if they wanted to build a mine they had a limited pool of interested funding partners.

The % of debt vs. equity is very favourable relative to African peers and far more significant in terms of reducing dilution than the price of the CR.

Regardless ... WAF is in purgotory now as it enters the development phase (just like GOR). It would have been the same if it just sat on its hands and slowly burnt cash on G&A not progressing their project.

At least this way as we inch toward the inevitable bull market WAF is advancing their business model to FCF.

Holding out for a TO in the ST is niave as per BTO MD’s previous comments (WAF is expensive at $200m) and the banker comments a couple of weeks ago in London.

There is no TO option at this stage (at a reasonable price) so better management get on with it.

You’ve been around long enough to have anticipated this Esh. Just buy more at 25-26c if you think CR participants are “stealing the company” unless you’re already too heavily weighted.

Just look at RSG and Syama and how long they have been in purgotory as they got the UG developed.

This is a long game. Pace yourself.

Cheers
John