Ann: Resignation of Executive Chairman, page-123

It's interesting, last week most were after Alistair's head, now he's fallen on his sword, he accused of doing a runner.

Bottom line & what we know is they failed to meet their guidance, about 4k oz short, more importantly they appear to have burnt a fair bit of cash in the process.

We also know the MD has resigned as has the Chairman.

I’d have thought most here would be happy with that outcome (resignations).

To me the guidance is not a big thing if we know the reason for it and it’s being rectified.

I see the ASX aware query concentrated on guidance, to me the bigger question is the apparent cash burn.

So far we don’t know the breakdown of this burn or how much the cost savings they’ve mentioned will save.

What now?

It is what it is, we have 2 scalps, importantly we need to recover from this.

Brett Fraser is probably a good choice of interim Chairman, a bean counter with a lot of mining & African experience.

Firstly we need the finances to be put in order, they have close to $70m available without a raise, the cash burn has to be halted.

They also need to find a new CEO, work out a workable mine plan that can be implemented with the available finances.

Lets not forget we have a 2.4m oz resource, our LLL holding is worth 11c a share even at the present beat up price of Leo.

We also have a fully operational 3.5mt/pa plant & associated infrastructure.

At 20c after you take Leo out we’re priced as an African explorer, not a developer, let alone a producer.

For those asking the asx/asic to do their worst on FFX, be very careful what you’re asking for (not that they read HC)

Do you want us to be suspended for 6 months plus? or have our listing cancelled?

I’m happy with that, I’m still showing a healthy profit, but many holders here aren’t in that boat.

Also worth remembering is 2 of the ex directors are large holders, Alistair Cowden 9.2m shares, Brendon Borg 12m shares.

This is hurting them financially too.

The main thing is they acknowledge where they went wrong & have a plan to move to profitability.