Ann: Firefly Scheme and Westgold Offer Update, page-27

Interesting and I think many valid takes on what has transpired. Shareholders have ample reason to feel disappointed with the drafting of the FFR agreement however I keep hearing the mantra that GCY 'overpaid' for FFR. That's one thing I disagree with. If you look at gold transactions over the last 18 months the purchase of FFR's proven resource (the Melville deposit), it's in line with averages paid. The problem was that GCY came to the game beaten down- they had few options other than to hang out the 'for sale' shingle which with hindsight they should have done or purchase higher grade feed for the Dalaranga mill which is the way things ended. On raw numbers the FFR transaction was fair, it played out less than optimally for GCY & favourably for FFR holders because they were paying for it with very cheap GCY script & had to give away 'too much' of the combined entity to get it away. Make no mistake GCY either needed the FFR transaction or a predator to take it out. As a standalone entity GCY will I think look to be in a solid position once the Melville ore is being processed. It's an asset, not a liability though the value of GCY's infrastructure has been diluted through using discounted GCY script for purchasing market value reserves. The strategic value of the mill isn't diminished to acquirers that still covet its capacity to process their own reserves that they can't otherwise process. Further, little or no mention is ever made in commentary of the substantial tax losses that GCY carries- these are large and worth their face value to an acquirer generating accounting profits.

The only thing restraining GCY's performance was poor mill feed. That's been addressed. I would have been happy to take a 1:3 offer from WGX but failing that I'm (almost) as equally happy to be here for what's coming operationally. It'll take longer but if the Melville ore delivers & gold prices hold, I think we could/should see a share price this time next year higher than what was on offer from WGX. I'm comfortable waiting for that.