Ann: Full Year Statutory Accounts, page-9

Hi Propagandista and all,

Posted here and also E-Mailed to Mr. Scott Huffadine.

Credit where it’s due of course it was nice to read we had no lost time accidents on site. Although I guess the credit for that belongs with the mining people and not those feeding from the company trough in Perth!

I note your comment:

“Consider too that the ISD/USD should make labor costs remarkably cheaper, yet the company still cannot break even.”

Now I will be the first to admit that math’s is not my best subject; however, I’m not sure how the exchange rate works for us with an all-in sustaining cost of production of US $1,580.00 and a Gold price currently at US$1,168.50.

My limited math’s can see that US$920.00 plus US $456.00 equals $1,376.00 and not US $1,580.00. Do we assume the other US$204.00 covers the excessive company remuneration?

I also note we have at last appointed an experienced general manger for Way Linggo and another salary and no doubt future performance rights etc. Welcome aboard the management gravy train Paul. One may wonder why we waited so long to find someone capable to replace Ashley. One may also further wonder if we are carrying a great deal more dead wood.

I accept that we have a great deal of development work going on and that there is a cost for this; however, the general idea in business is to keep the cost price below the selling price and make a profit. If the all in cost can be reined in to the $920.00 and the Gold price remains at $1, 68.00 and we can maintain that for a few years going forward we could do OK!

Mr. Scott Huffadine with the company currently in this parlous position are you really being serious, I implore you to re-think your request for 1.8M free shares or at least present some kind of case for you being granted these shares; because I just can’t see any justification in the last quarterly report!!!

The failure of your last lot of options was entirely down to your personal performance it was not us the shareholders. At the time the options where granted someone must have believed it was achievable and this was a suitable incentive for you to put your heart and soul into the job. Clearly you prefer the easy option of free shares and what that tells me is we can expect more of the same from you!
Therefore I once again ask all the other shareholders to give deep and meaningful consideration to the message you will be sending to the management if any further board remuneration is even considered at this juncture!

In fact at this point I feel there is a good argument to be made that all current salaries are frozen or better still reduced until this is operated as going concern.

Maybe it’s just my funny way of thinking but when I was running my private company I had to take all kinds of measures such as reducing my own wages and working longer hours in order to ensure a profit. I had no rich uncle (please read shareholder base) to turn to in times of trouble I managed to keep the doors open from 1989 until my retirement in 2009 and the business continues today. Here of course comes the crux of the matter I was using my own money. For some reason people spending other people’s money don’t appear to have the same regard for it.

I note an advance of 53 Meters and another 157 Meters to go to reach 210 Meters so we can continue digging ourselves into a financial hole as well as areal one for at least another couple of quarters.

Stroll on!!!

Cheers and very best regards: Andy