Ann: Q4 RESULTS AND COMPANY UPDATE PRESENTATION, page-26

Although you can't blame AL for what's happened at Jaguar with the seismic events, there have been obvious errors in purchasing Round Oak and not having hedging locked into the deal by the time of completion. I'm in the camp that says that this debt facility is better for shareholders than the capital raising alternative - don't think he would have got the required support from institutions as the share raising would have been about funding the closing of a mine whereas most raisings are about growth opportunities.
My 'beef' with AL about this exercise is that he hasn't given the market enough facts around the financial position of AIS at the time this debt deal was announced - namely, no net debt figure as at 31July - yes we have the cash balance at 30Jun of $19.5mil but I believe there would have been a world of difference between that and the situation at 31July - not only do I believe all that cash would have disappeared during July, I also believe they might have been digging into the ANZ working capital facility in order to pay down Jaguar's creditors at 30Jun - there was no income from Jaguar during July as it essentially finished mining by mid-June - we are apparently told in the Q&A webcast on 2Aug that there were creditor liabilities of up to $15mil at Jaguar plus $8mil in closure costs but that doesn't tell us how much was paid out in the month of July - and I firmly believe they were under an obligation to tell shareholders the net debt(or cash) figure at 31July.
I'm of the opinion that the amount of the WHSP facility that they'll be using by 30Sep when it's announced in the quarterly report on 31Oct will be a shock to the market even though I expect the remaining three mines in the current quarter to generate positive cashflow.