I think it’s great direction moving forward, however; if Indonesia has the capability to produce 15-30,000oz per year (even 10,000 at the lowest point) with the labour rates being so low, it could fund another 1-3 major exploration acquisitions each year also giving the ability to drill and provide JORC summaries for the PGE projects from cashflow, driving up value for shareholders and also enabling dividends whilst other projects are advanced. Getting a small number on the sale wouldn’t potentially be the best if you consider the operations could potentially be getting more each year in profits from operations (rather than a once off), understandably there’s some challenges that may need to be overcome with exploration/design/engineering/local geology. To setup mining operations in any new operation in future will take a number of years (& reading between the lines it doesn’t appear that the team are focussed on forward mining rather an acquisition), and whilst I agree it’s a great thing moving forward I’d really be asking the board to reconsider if there’s any opportunities to continue in Indonesia. We already know the market is prepared to discount shares below cash value held by the company, and from Fabian’s interview it is quite apparent only existing funds and potential sale proceeds will be used. From existing cash held, he anticipates around $5m being left in 3 years time (removing some $23m). If the market continues to discount the stock due to management issues below cash until some period of stability is shown it may be an issue for our combined investments. It also concerns me that they are looking to prop up the exploration projects to setup an acquisition by another larger party; whilst this is great, cash being difficult and rates on the rise, I’d be concerned if that will realise the full value or again similarly if the project will be sold at below market value due to economic conditions. The way Way Linggo is handled will set a precedent for what to expect on the other projects I believe. My request again to the board is to reconsider its position taking into consideration the assets and mining plant owned by the company - in particular if there’s any opportunity to realise the same amount annually by building up the pipeline of forward exploration & mining. Fabian seems to allude that it still has great prospectivity, and states that management had given up on exploration, and mining life coming to an end. There’s still some 300,000 in existing JORC and with some additional exploration isn’t there any opportunity to build that up beyond 600,000+ providing a good forward mining & processing pipeline? It could be that the local geology, engineering and issues faced historically have them feeling there’s easier projects. Non producing explorers are currently being battered, and facing further drops in the economy non producers will be hit off worse. Unless you’re mining there’s no guarantee that the actual projects being mined will ever get to be mined. So in respect to my shares, if the company called for a vote, I’d be asking if they can strongly reconsider any sale below market rate (being Au$50-$70/oz per Au at minimum plus full value of assets).
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