egm info, page-15

Hey Cuzo and co as promised here is my report back from egm, not in any particular order -

*HNC are in finacial trouble and have renegged on the 0.42,maybe even GT, we can probably expect another conversion but at a much lower price
*oxide project has been one stuff up after another
*in Woods words it was "demonstrably eroneous" (the commisioning,if thats what you can call it) "they never tested/piloted the co/ni circuit and in hindsight that was a mistake" this coming from a director is very troubling I think but something Cuzo may use.....
*it will cost between 1-2 million to fix the screens, they are too small, will take about 3 months to fix and get to full production, he says an easy fix (if they have the cash)
*oxide viability is very much dependent on cobalt and this has caused all the financial problems, cu alone will not cut it
*HNC has pulled funding? perhaps becuase they are running out of money or can't be bothered pumping money into a project that is one stuff up after another
*copper production not at nameplate, lower leaching levels about 70% should be over 80%, its fixable but needs work (not sure what all that means?)
*HNC dispute (although more like a differnce of opinion) "was the straw that broke the camels back", its finances that is the real issue
*Wood reckons the dispute can be resolved but implied by coming back with a conversion at a much lower rate
*resoultions by proxy overwhelmingly supportive
*one shareholder asked the question if there is a dispute resolution clause in the JV that talks about pre-emptive rights to buy or sell, he said this was critical info for shareholders to know, neither of the directors could answer the question, apart from Mr Cohen saying he thinks its in there?? (if someone can explain what pre-emptive rights really means would appreciate it)
*oxide project can work and be profitable if plant set up properly, how much this will cost he didn't say apart from how much bigger screens would cost
*Wood wanted to talk up the sulphideproject and basically said this is what its all about although current climate will see it take its time (not going to be fast tracked)
*Intec are meeting with HNC next week to discuss flow sheet for sulphide project, so this was a bit of a positive I got out of it (this is at Intec's expense)
*Wood said firesale unlikely, says plant needs to be fixed and then it should be ok? more likely scenario he implied
*creditors need to be satisfied projects are worthwhile????
*HNC valued sulphide project at a min of $1 billion for there 50% at time of JV (hence why they would spend 1 billion)but that value has now dropped sharply in current climate
*uranium an option but years away and not part of JV
*Alf field and his posse was there so that was pretty cool


My impression

I must admit I was a bit excited to be there my first egm and all but had not heard the news before hand so when Wood opened the meeting and said "well most of you would have heard the news by now that we are in VA" I was gutted and it made the rest of it very hard

A couple of shareholders (out of 40)voiced there dissapointment (not me couldn't see the point) but really wished all the shareholders on HC were there would have made it much more interesting, I felt they got off very easy, and what really gave me the s***S was Wood smiling all the time, what was that all about, he obvioulsy hasn't pumped hundreds of thousands into this mess.

Was hard to know whether to believe him or not, he spoke well but can't say I believed him, Cohen said nothing not sure why he was there and the Administrator well lets hope he can work some magic and live up to his MANDATE and save the company for all interested parties (including Shareholders)

Still can't believe not one exec was there, to scared and the story about GT being ill, well how f****** convienient, hope he losses his 23 mill although we know that won't happen

I attended with my wife (thought she might like to hear about where all our money has been invested:) and she knows nothing about all this stuff but to her credit she listened and came out thinking not all lost, the VA is probably the best thing at the moment, have someone who knows how to run a company making the decisions for once (good point and can't be any worse then present management) administrator seemed like he knew what he was doing and had our interests at heart so lets hope she is right

All and all I am very dissapointed, I have invested a lot of time, money and effort into this company, always believing that it would be the next big mid tier miner, however its been one stuff up after another and we are all hurting

lets hope someone is looking after our interests now and that we can return (maybe in time for the next boom) and get our payback!!

goodluck all, cause this aint fun and thanks Cuzo for looking out for us, much appreciated, lets hope it don't get to that though, Oly you seem to have gone very quite, probably following the gold stock that has rocketed, can't balme you

Giddy up