Guys - I don't want to rub your noses in it but IMO there were a...

Guys - I don't want to rub your noses in it but IMO there were a number a red flags raised in previous disclosures by this company that I highlighted in several recent postings but went largely unnoticed.

For example:

Post #: 10132063 on 1 Feb 2014

Having patiently watched WDR transform into producer status seemingly without any published ore reserve or feasibility study despite the occasional references made in Competent Persons Statements to a reserve, mine plan, mine schedule and costs (eg. ASX release of 29 Oct 13), I'm now left to decipher this quarterly report which IMO lacks any meaningful detail. In particular;
- there is no data on grades for direct shipping ore and blendable direct shipping ore produced and note that the current waste to ore ratio is running at greater than 8:1 which I hope will be lower in the future.
- receipts were $8.2 million at an average sale price of $120/t implying ~68,000dmt were sold although only 24,000wmt were actually shipped!!
- there is no specific production, sales or cost guidance provided for the forthcoming quarter or for FY14. Can we expect a material drop in production costs which exceeded revenue this quarter? With a net operating & investing cash flow of -$124 million for the last 6 months (-$237 million since June 12) and debt facilities fully drawn, ramping up ore sales and lowering production costs are going to be critical issues for the forthcoming quarter
- when can we expect an ore reserve to be published? I note the following disclaimer in the 15 Nov 13 presentation

“Ore Reserves and Mineral Resources Reporting Requirements.
Investors should be aware that as an Australian company with securities listed on ASX, WDR is subject to Australian disclosure requirements and standards, including the continuous disclosure requirements of the Corporations Act and the ASX. Investors should also note that it is a requirement of the ASX Listing Rules that the reporting of ore reserves and mineral resources in Australia comply with the JORC Code”.

I presume Macquarie would have requested this info for the project finance DD.

Post #: 9837955 on 29 October 2013

What a strange announcement IMO. There now appears less (undisclosed) DSO tonnes at a higher grade when compared to the resource (Fig 3). Also the competent persons statement for the reserve has reappeared on page 6 but there is no mention of the reserve in the analysis and what effect less DSO tonnes will have on project cash flow.

As a general observation, the quarterly report was also very uninformative. I still cannot locate anything on the reserve and production/cost forecasts which presumably was part of the work performed by Minserve.

.....and so it goes on


I won't have the opportunity to review in detail the vast amount of information released to the market today until later this week but strongly recommend that you as shareholders bring these disclosure matters to the attention of the company. Assuming that specific technical detail exists on the project, then it would also be my expectation that this information would immediately be made available to the market.