Ann: Yangibana Project Update, page-24

This latest ASX Announcement essentially appears to be a rehash of previous Announcements designed to downplay the CFO departure. Reading between the lines the company is in disarray. In the middle of construction a new ‘interim CEO’ has been appointed which has resulted in the CFO, COO, Legal Counsel, Project Director, and most likely many others leaving the company in a very short space of time. The loss of corporate knowledge and internal disruption must be taking a toll. Some of these positions have yet to be replaced, including the Project Director. It’s interesting the Board considers it appropriate to make multiple disclosures on new appointments but missed out on disclosing the initial departures. Go figure!

As for funding, this is the never-ending story from Charles Lew an investment banker who appears to lack any real mining experience. Why the Board of a junior miner part way through construction, but not fully funded for its flagship project, would borrow funds from a third party to fund a downstream investment in a third party on onerous terms remains an unanswered question. That the investment has tanked and the loan is secured by HAS shares is worrying. A cost and schedule review is now being done. Given cost blowouts in most construction projects over the last 12 months, this company will be a unicorn if there are not significant cost and schedule impacts. Until this review is complete, the uncertainty must make further investments by third parties (debt or equity) extremely difficult, if not impossible, and unlikely to be on good commercial terms. How long this review will take is unclear. What is clear is that without a CFO, a Project Director and with an ‘interim CEO’ whose initial term expires in a couple of months the Company does not look to be an attractive investment proposition: Who will be doing the roadshows?

Long term shareholder on the way out- GLTAH. Simply my 2c