downtrend explained, page-23

Psi and co, RE: Ferreira mine life,

My problem with the projected net loss is there is a clear diversion between what the consultants have been told in order to do their modelling, and how we as the market have been led on to believe that Ferreira will seemingly just go on forever because of the coal upgrade facility. There has been no definitive strategy laid out by the company with regards to both the costs of rehab involved, and whether or not they plan to run the 'coal upgrade' project on an ongoing basis.

Spaceboyc,

The Botswana drill campaign has been highly touted by the company as their 'backbone' strategic asset whereby they can develop it and value add to it, and then hand it off for a healthy return. Given that we had news about everything from geological plans being completed in June to key deadlines in March next year, doesn't it seem just a little bit strange that there was no announcement made when the drill rig began drilling recently, given that the campaign has been delayed multiple times, and this piece of news is arguably the most 'news worthy' out of Botswana yet? Conti jump at every chance to release an announcement, with the Botswana drill commencement now being a notable exception. Its just a little bit odd in my opinion.

As for DW, Spaceboyc I will be the first to put my hand up and list of the challenges involved with getting a mine up and running, but there once again is an unexpected lapse in deadline from 'early 2013' to 'late 2013'. Sure, if they explain why this is the case to everyone, then that I will understand, but they have not done so. Poor market communication here; that is largely the gripe I have with this issue, not just the delay itself. Just like the $10M consultancy fees and the $5M undisclosed fees, this is another piece of the company that is let to slip under the pile of paper on table, and I won't let it go on any longer.

These guys need to be brought to attention, and they need to disclose where this money is going. For a $100M company, $5M is an awful lot of cash to just file under an undisclosed header. And once again I personally cannot believe that we put $10M towards consultancy fees. Its just ludicrous!

By the way, I would have addressed all this a few weeks ago closer to when the final report was actually released, but I was in the sin bin for a bit of a mix up elsewhere.