are we getting rogered

I have carried out some calculations as to why this takeover is not fair to CQT shareholders. In doing so and to try to get a better understanding rather than take at face value statements and balance sheets printed in the scheme booklet. What I have done is work only on the future gold assets of each party. All figures for the calcs that have been made are taken from the reports in the booklet. I have done a quick spread sheet on gold resources of each mine only for ease of comparison and the results do not take into account silver and copper. The figures throw up some interesting information. Taking the total gold production for the last Calender year for the proposed new entity it was 237,248 ozs of this CQT produced 19.34% NCM 67.79% & CAH a miserly 12.86%.
Gold production costs were CQT $950/oz NCM $693/oz & CAH $1121/oz.
Given that most of CAH mined gold comes from their 30% interest in the Cracow mine with NCM partner it has the lowest mining costs of the three but when you look at CAHs quoted mining costs of $1121/oz for its other tenements you can see their profit margin is only marginal & a fall in the gold price to $1250 would probably shut them down. You can therefore see that the only decent mine that CAH is bringing to the party is their 30% of Cracow.

This brings us to mine life. Again figures are from the CQT document.
Of the total gold reserves that the respective partners are bringing to the party NCM =20.36% CAH = 37.39% of low grade ore & CQT = 42.24% of good grade ore
If production were to continue at the present rate at the Cracow mine the gold reserves would be extinguished in ten years. CAHs reserves would last ninety nine years but as already stated with such a low gold content and high costs why would you bother.
CQTs mine life at present rate of production would be seventy five years of decent ore value.

The question that needs to be asked is do NCM & CAH need CQT assets because of the limited lifespan of their own especially the Cracow mine and the inferior quality of CAHs & NCMs ore reserves Mt Rawdon again inferior g/ton figures

Cash contribution
Q This raises the question of the cash each company is bringing to the party i.e. audited equity left in the companies. CAH $138,000,000. CQT $92,000,000 NCM Zero ??????. Why not?
Q Should the CAH & CQT directors have insisted NCM put in an equivalent sum of say $150,000,000.
A they are going to raise that amount from the existing clods sorry shareholders of the new entity thereby devaluing further their already devalued shareholding. NCM will not be taking part in the CR.

Q This begs the question what are NCM bringing to the party.
They are bringing their 70% of Cracow total gold reserves 170800 oz/gold this being their share of the Cracow reserves- gold grade 7g/ton
They are bringing Mt Rawden gold reserves of 920,000oz/gold gold grade .087g/ton uneconomical cut off .4g/ton not what you would call a top investment.
Total gold reserves = 1,090,800 ozs = NCM contribution.

Q what are CAH bringing to the party.
A They are bringing 30% of Cracow 73,200oz/gold gold grade 7g/ton ( working off the NCM figures)
& from their other tenements 927,000oz/gold gold grade 1.1g/ton.
Cash value converted to gold @ $1500/oz = $138,000,000/1500= 92,000oz gold equivalent
Total gold reserves 1,092,200 oz of gold & cash equivalent = CAH contribution.

Q What are CQT bringing to the party
A They are bringing Pajingo total 140,000oz/gold gold grade 5.1/ton
Mount Carlton = from A39 a 167,000oz gold equivalent & fromV2 = 1,088,000 gold equivalent.
Cash value converted to gold @ $1500/oz =
$92,256,000/1500= 61,504 oz gold equivalent
Total gold equivalent & gold reserves + cash equivalent 1,456,504 oz/gold = CQT contribution

Summary of totals of gold reserves & equivalents brought to the new company by each party
NCM = 1,009,800= 28.38% of total
CAH = 1,092,200 = 30.69% of total
CQT =1,456,504= 40.93% of the total.

So you can see CQT are bringing by far the greater value to the new enterprise in terms of ongoing reserves and cash and yet are the minor partners with a shareholding in the new enterprise of 31% NCM are the lowest contributor yet have the highest holding of 38%
IMO CQT shareholding in the new enterprise is being devalued by 10%
The Samuel report is totally correct when it says that this is a takeover by NCM and makes a total understatement when he states that it is Not Fair.
The directors of CQT will be tainted by this sell out.
We as shareholders need to vote this proposal out.
If CQT needs to be sold normal market forces need to prevail not some dirty little back room deal.