iron ore backdrop improving, page-8

Possibly Defamator?????

Let me explain:-

1. This management team set out to buy DSO mines with a view to be mining and shipping ore within 1 year. That was over 3 years ago.

2. The cashflow from the DSO mining was supposed to fund further mine aquisitions with the first shipment scheduled for Feb 2010 from memory.

3. Over $1 million dollars paid to PODAR

4. Over $1 million dollars paid to geologists and for drilling

5. A $500,000 loan to an ex director with a personal guarantee as security.

6. Mine expansions to be funded by cashflow with no need to borrow or cap raise.

7. Multiple announcements stating that mine gate sales demand was ROBUST.


So what do we have now:-

1. No DSO mines and needing to spend approx $5 million for a dry and wet benification machinery. The due diligence conducted by the BOARD to purchase the 2 mines stipulated that they MUST be DSO mines ready to mine and ship ore in a short period of time!!

2. As at 30 Sept 2012 not 1 cent in cashflow from the mines three years after purchase. Admin costs now up to $600,000 per quarter!

3. Where are PODAR now? Did they have anything to do with selling us DSO mines? Kuja and Mangal are NOT DSO mines!!! If so are they being persued to recover their payments?

4. What role did the geologists play in securing the sales of the mines and how could they have got it so wrong? To date I still do not know how much ore these 2 mines have, even after being extensively drilled!!!

5. Isn't Mr Wall a lawyer? Wasn't he the chairman of the board when the $500,000 loan to the ex director was made? Shouldn't he have sought a greater degree of security for the loan?

6. So 3 years later, still no cashflow, and guess what we need to BORROW $2.5 million which can be converted to shares and further dilute shareholder value.

7. ROBUST demand = 5,000 tonnes per month and only for 3 months. 5,000 tonnes per month is pathetic and a waste of time. If the mine is supposed to produce 200,000 tonnes per annum what is going on if all they can do is 5,000 tonnes per month? And before you say it has been raining etc etc, what they did not know that India has a monsoon season?

So fellow shareholders you guys tell me, who thinks that Cedric and Sean have done a good job? How many of their targets have they hit? What due diligence that they have done has been useful to shareholders and avoided us having to spend millions of dollars on inferior mines and an inferior business model?

I bet they still take their bonuses though.