Ann: Update - Proposed issue of securities - CAI, page-7

Call it what you will, some would say it's bad management, others might say it's just a lack of market knowledge, and a complete misunderstanding of the global gold environment in which they are supposed to be professionals.

However you cut it, these guys completely screwed up on their hedging, and as a result, have been bleeding badly, and begging with everyone for a re-negotiation of terms, and now they've had to go to the market with a begging bowl, for funds at a desperately low price, hoping it will save them.

Just imagine being a gold producer with more than $60 million debt, who hedged 75,000 ounces at AUD$2,300 an ounce, when the price is now a thousand dollars per ounce greater at AUD$3,300 per ounce?

This is how losers operate, and how they illustrate by example.

So, is it management incompetence?
Or, is it just pure bad luck?

You do the research, and you be the judge.

Gw