Luanboo
Could you ask some questions in relation to the approval of the Fines Circuit on the shareholders behalf.
We were originally told that the fines circuit would be up and running in the September quarter, that was then pushed out to the December quarter. The company had lodged the expansion approval back in November 2018. This should have been a straight forward approval as it was an addition to an existing plant and would have been covered by some of the existing permits already in place.
Approvals should have been forthcoming within a few months of lodgement yet we find ourselves in a situation where 8 months have passed and we still don’t have that approval. This matter has been on hold for many months now and it appears that the company has not responded to the request for further information. WHY?
There is a fundamental flaw in the A40 business model and that is we are putting 100% ore through the existing plant but we are only processing 2/3rds of that to the final product. Each quarter we are having to stockpile about 90,000 tonnes for processing at a later date due to not having the fines circuit in place. This has added to our cost of production at a time when we are struggling to operate at a profit and having to rely on other people’s money to get us through. This is a far cry from the promised 185% IRR in the PFS which I relied upon when initially investing in this company.
Nothing is more important to our long-term survival than to have this circuit approved, built and operating to get our cost of production down so we are profitable yet they are dicking around calling EGM’s and wanting to reward themselves.
Questions I would like you to ask if I may:
1. Why has the company not provided the information requested to advance approval and when will they do so?
2. Are we expecting the Fines circuit to be commissioned by the end of December or are we facing yet another delay? If there is another delay what is the revised date?
3. We have previously been advised that they were forward purchasing key components and money had been allocated for those purchases. How much has been spent to date and where is the equipment stored so it can be viewed. I no longer trust anything these people say.
4. Will costs still be within the $10million-15million budget?
Yes, I could ring the company and get the answers but I now want those answers to be in a public forum so that the responses are on record and they are accountable for the delivery of those undertakings because I have lost faith in management’s ability to deliver.
Thanks in advance
