Ann: Brief Update , page-13

Welcome to the world of investing in microcaps.

ORD's management had done well to get a fantastic deal together via JV with GRAM for Copperflats. But it fell through which can't really blame them for it not being approved by Chinese. I don't think anyone here was in this stock for Copperflats.

But shows good management in my view to now seek to sell this asset and focus on its other gold assets as well as Laos. I agree with Timber, would rather see all cash sale as that is what they (and us) need most at present, rather than farm-in and/or royalty arrangements.

With Laos the pushback of the IPO is due to the diminishing current market and outlook for Aluminmum market since they first announced the deal. This is hence about picking industry sectors first...bauxite stocks not best play from sector perspective, but other commodities like gold are.

Grouping together ORD's gold stocks for an IPO makes sense to realise value for shareholders. I can't confirm whether that will happen or not as not had any wind from management such a strategy is being pursued. Personally though I think it more about timing, as they would need to do drilling of SJ to get more investor interest in this for any IPO, so would think this would be at least a year away if they pursued this strategy.

I still have some ORD but not as much as I use to. But at these levels pretty comfortable with what I am holding in my superfund.

So if I looked at what has been achieved in last 12 months:
1. Effort to realise value from CF and reduced shareholder funding risk via JV, which didn't succeed and now looking at sale as plan b)
2. Laos feasibility study work completed with resource upgrades (with one still pending)
3. Major deal structuring for Laos IPO but now put on hold given state of equity and alumimum markets.
4. Negotiation of Caledon option.
5. Survey work for SJ to prepare for drilling
6. Reviewing potential gold acquisitions - none confirmed yet

In between that you have had quite a severe market downturn as in this sort of environment you see a decrease in activity as more about conserving cash. Remember its biggest project, Laos, is in a commodity that is well out of favour at the mo. If wasn't for its gold asset and focus on acquiring other gold assets I would probably just cash out and reinvest at later stage.

I guess it is all very well to blame management but you should also perhaps share the blame with yourself for not perhaps lightening or exiting this stock to reflect the SARCO IPO would be delayed due to MACRO factors, and risks around other assets e.g. CF's which it was seeking to realise value from to fund drilling for SJ.

We may still yet get some decent coin for CF from a trade sale, so lets wait and see.