pathetic management, page-8

Plough

Completely disagree.

The company has reduced the size of the plant by 50% to save US$100M or 35% of the original capex, the gold produced per annum has not reduced by 50%.

The 50% reduction is from not processing the lower grade Vein zone only. See page 2 of the report from 29th of October. This represents 525koz or 30% total recovered gold production in the original mine plan to 2016.

If you assume that Eureka is still producing in 2015 and 2016 (which was more than likely) then this figure is on the high side.

The only reason for this reduction is that they cannot dept fund part of the ~US$280M of capex at the moment. I don’t see any other mid tier gold companies on the asx raising this amount of cash. Almost all unfunded resource projects without funding at the moment have ceased and are idle.

IMO what AND have done is necessary in the current market without entertaining other companies to partially fund construction.

Talk to BMO and CMR about pathetic management.