Ann: Quarterly Cashflow and Activity Report , page-21

I have always admired Nick Garling's forthright upfront go get 'em honesty....And (in a (more frequent MCO down mood lately) I sent him an email re the quarterly which I quote:

"Nick,....I am very disappointed with discouraging tone of quarterly. Very much the opposite of gilding the lily."

And I mischievously concluded with a few other random items I had gleaned through HC gossip etc, closing with the usual Cheers Stewi

NICK GARLING'S PROMPT REPLY IN ITS ENTIRETY, less some well deserved prefacing expletives)....uninterrupted and unchanged, line for line, cut and paste is as follows.

"Didn't I tell you to stop reading OzStocks and Hotcopper and Top stocks ages ago? 95% of the rubbish you get there is laughable and is heavily predicated to conspiracy theories not only in MSG but nearly every other stock.

"Further I have to suffer wallys with other personal grudges or agendas slandering the company and me all under the cover of non-de-plumes.

"The quarterly is clear concise and accurate. It gives a totally upfront account of what was going on 31 March and back.

"It is not deliberately negative or positive – it says what the company has achieved (and not achieved).

"I have very little to do with the running of the company day to day now that is Mike's job and that is by design as I know very little about mining.

"I am merely the Chairman at Board meetings and looking to add insight on the financial machinations where needed.

"Where I can help is connecting investors and capital from time to time.

"Mike and the several other technical people run the show and right now getting the tonnages out of the upper levels MSGM is not an easy task as there is variable grade
(Dickenson perhaps 2gt and Burns 20 for example).

"All mines face the same issues but if you or other investors think it's easy setting up and mining remnant ores which have been picked over by 100's of people for 100 odd years well, you are mistaken.

"I heard Mike B say at the agm "grade is the risk" and he is 100% right. Which is why we are so aggressively attacking the regional stuff now as the top 150 metres of the MSGM is very risky for a long term sustainable mining business.

"If Donaldson is 100KT as we think it is – well at 5gt it breaks even at 8gt we are happy days. With 5 drill holes piercing it, that is a risk and if people don't understand that risk associated with our business and similar ones, they should be investing in stocks like Newcrest which has gone from $42 to $25.

"I believe we are going better gradually but don't believe looking at the numbers that you will double or triple your money in a quarter. That is my sober view of it.

"I have always said it's a long term play MSG and I stick with that. That is why I am invested, Zeng, Alexei and others I can speak for.

"I am happy for you to print any of all of this to all the 'theorists' or otherwise out there.

"We are in the midst of relocating to Melbourne but I'll be in and out of the office should anyone want to call for a whinge or a natter.

Rgds Nick


In Closing I say Cheers to our Chairman.