Ann: Mt Morgans Operation & Corporate Update, page-700

"what do you think of Rohan? is he capable enough to get the company out of this mess? is he able to come out with clarification that puts all these cash-flow questions to bed?"

I am very upset with Rohan and don't think much of him at all anymore.

Below is a post I made in March about the presentation Dacian released on the 25 Feb 2019 in which they stated that

"Westralia now performing in line with Feasibilty Study levels". I believed this statement.

https://hotcopper.com.au/threads/an...4672647/page-27?post_id=37784205#.XP2bIoo_WhA

Not long after that (on 25/3) the company update for the March quarter and revised June quarter guidance came out which actually disclosed that the production problems at Westralia were known about and peaked in February. They said then that

"The production shortfall peaked in February and was addressed in March through a number of xactions which included the mobilisation to site by the underground mining contractor of two new 60t trucks and a new tele-remote loader. The Westralia underground mine now has a fleet of six 60t trucks and three tele-remote loaders operating and is currently on track to mine 100,000t during the month of March (giving rise to an annualised production rate from underground of 1.2 million tonnes per annum)."

It is hard to imagine that Rohan and the company did not know of the problems with the mine when they published that presentation (on the 25/2) saying that Westralia was performing to Feasibility Study Levels given the problems at the mine "peaked in February". It would also be pretty hard to understand how a mine could be performing to feasibility levels while at the same time undergoing a production shortfall. IMO unless the management were not aware of the production shortfall problems at Westralia when they published that 25 Feb 2019 presentation they have misled people like me into buying stock when I otherwise would not have bought it. Also in this case if they knew of the problems when they published that statement they can not hide behind disclaimers appealing to "forward looking statements". There is nothing forward looking about stating that the mine is "now" performing in line with Feasibility Study Levels IMO. I think this would be a good case for a litigation funder to review to see if there exists a cause of action for investors to pursue although I am not interested in going down that route.....again.

Rohan also made this statement in the same announcement on the 25/3 along with issuing the overly optimist guidance for the June quarter.

“We are confident that the issues we faced in the March quarter have been resolved and we are forecasting a strong June quarter with a corresponding excellent all-in-sustaining-cost profile which puts us on track to achieve our targeted annualised production run-rate of 200,000oz,” Mr Williams said.

So the problem all investors have and the reason the share price is at such a low ebb is that the market has lost complete confidence in all statements coming out of the company

Now if I was a completely gullible fool and liked making the same mistake over and over again I would believe what Rohan said in the conference call when questioned about the need to raise capital and I would believe Rohan when he talks about the high correlation between the grade controlled portions of the Westralia deposit that are reconciling with what is coming out the mill and that underpin the new 5 year mine plan (still in review) which would seem to imply that this company still has plenty of life in it if the gold price remains high and I would believe Rohan when he says the nugget dilution grade issues are localised to subordinate lodes at the Westralia deposit and I would believe Rohan when he says Jupiter is performing well this quarter with an unreconciled grade of 1.6g/t (greater than the revised average reserve grade of 1.2g/t).

Unfortunately for me it doesn't matter whether I believe Rohan or not because I have remained in for the ride whether it leads to complete failure, a partial turnaround or a orchestrated corporate raid.

If Rohan has any respect for longstanding shareholders he won't throw in the towel to a merger proposal at the current share price. He needs to make good on his words and show the market that this stock is not a complete basket case, is not in a liquidity crisis and is not in imminent danger of falling into VA. The sooner he does this the better. I doubt he would want his reputation to go down in history on the current note. Esh