Ann: Trading Halt, page-355

In light of the 'cap raise denial announcement' and corresponding cap raise, I spent a lot of time last night going back through announcements since the Morila acquisition.

This sticks out from pg 13 of the June 'Equity raising' presentation.

"In the event debt funding is lower than expected, or is not received, Firefinch will use equity proceeds to provide the necessary capital to mine satellite pits for cash flow before mining the main pits"

That's quite clear about the plan, with or without debt. It would be slower development without debt. Somewhere along the path there was a change of plan, without bothering to tell the shareholders.

In light of the 'denial announcement' I'm finding I'm reading all the announcements more critically, without any rose coloured glasses..

Firstly there is no budget laid out for the entire refurbishment of Morila anywhere I have found, since the release of the LOMP, just the words/belief it could be done with existing cashflow and the equity raise.

IMHO us shareholders should now demand to see the full planned budget for restoration up to full production from Morila. Assuming the current cap raise is completed, it is now $274m raised to do this job, when the original $74m and cashflow was meant to do it. Yes a little has been allocated to Goulamina, but it is only a fraction.
Even with all the $274m raised, Morila is still a bargain with my own rough, quick, very conservative NPV at 8% over 8 years using higher costs and $US1,750 Gold price, ...of ~$688m. That's without any further discovery, some of which has already been made.

It is time to fess up the numbers, so we know where we stand in regard to any further possible raises.

I'm still withholding judgement on the Dec 2 'denial announcement' until we receive the equity raising announcement, but it is getting harder to do as more information comes to light.

I don't have an issue about needing to raise capital if necessary, it's just our own fault as shareholders in not asking the right questions about expenditures on Morila and wanting to believe it was less expensive than it's turned out. It's just another lesson in remember to "question everything".

BTW in the Dec 2 announcement the statement "The Company can confirm that it does not currently have a mandate in place to raise equity."

How can that be true when they had just been given the mandate to raise again by the vote a couple of days earlier?? In the words of the redhead.. Please explain..