Whats Wrong, page-29

Actually, I made around net $100k on RSG. The last two years I am down around $20k on it, so prior, I was up $120k. So, perhaps you may want to draw a line on making assumptions and questioning someone's assumptions.

I have also done quite a bit of analysis of AQG from 2013-2019. Let me present the following (dollar values converted to AUD):

- AQG had net cash of $325m in 2013 financial year end, peaked at $495m in 2015 financial year. They are now in net debt of $328.5m. They were on $51m net debt in 2017 financial year given a $310m non-current debt. From the peak in 2015 FY to current FY cash position has experienced a change of over $800m.

- Book value increased from $708m in 2013 and now is $1 328m as at 2018 FY. Along the way, I give it to them they generated equity from profit net of capex as their Copler sulfide mine reached completion

- Production annually varied between 160-220koz p.a. at AISC $820-1 300/oz (pretty good work I must say) though major capex from 2016 onwards. Refer to diagrams below showing production and gold sales and operating cash flows net of capex including purchase of PPE and development expenditure (including Copler sulfide processing plant expenditure amounting to US$664m, over AUD$800m):






As said before, not deriding AQG at all (not even close). But I think the way RSG is being treated in the context of all this seems to be unjustified. AQG's performance over the period can be said to be better as they were undertaking the Copler sulfide project development, but it is undeniable the company was getting deeper into debt. Yes, they did not raise equity but that is because they had a much higher debt at the outset, while RSG progressively borrowed as their cash reserves decreased.

I collect company data by hand and enter into a database of my own. Happy to stand by my numbers and inferences. Perhaps the misunderstanding came because I quote AUD, not USD.

All the best,
Brian