Ann: Corporate Update, page-28

Exactly correct Raider. I cannot understand why management did not stick to the plan as detailed in the supplementary prospectus . 14ktpa would have seen a profitable business established with minimal risk. Customers reintroduced to the Uley graphite while positive cash flow is received to move the business onto the next phase. Anybody know what actual experience CD had in managing this type of business? It is too late now, but certainly the prospectus was very light on specifics.
I have prepared a summary of cash flows from the 5B filings. Interesting to line these up against prospectus information.
The following summarises the cash outflows for the period 1 July 2014 to 31 December 2015.: all numbers $000.

	Column 1	Column 2
1	Exploration & Evaluation	1,804;
2	Development	2,661
3	Production	6,263
4	Administration	6,348
5	Fixed Asset Purchases	7,318
6	Share Issues Expenses	1,253
7	Total Cash Outgoings	25,647

This $25.6m of cash expenditure generated the magnificent sum of $4,000 (rounded) in income from customers. $12.6m in production and administration expenditure and $4k income. Must almost be a record?
Hopefully there is stock on hand which we should find out when six monthlies are published.

How can this be allowed to happen, and more to the point, what can we do about it?
From posts above it sounds like the major shareholder is taking some action. Pity they let this situation drift so long while we were blinded by flashy presentations to world wide audiences. Little good that has done for the company?? I guess it does explain some of the $6.34m in admin expenses?