Hi, everyone.Management holds 70,500,000 shares or 2.44%- this...

Hi, everyone.

Management holds 70,500,000 shares or 2.44%- this is the one of good news from the last Presentation. I think they hold them for capital gain and dividend.

In my opinion we need to ask management and board about future plans for dividend payments (may be on AGM, if this idea will get support from shareholders). It is easier to plan now because the Plant is running, they know production and exploration costs, other expenses, including salaries.

I would like to offer some ideas. All comments will be highly appreciated.

1. All salaries for Board, Management and permanent staff should be based on dividend. Contractor payments would stay unchanged.
2. Base dividend could be - 1cent. Total dividend for all shares will cost $28,63 million per year. It may be paid in half every 6 months.
3. In order to replace salary using dividend, Company should buy shares from the market. Dividend payment from the start should be more than salary on 10%.
Example: Executive Director has $150 000 p.a. from dividend he will get $165 000. The Company should buy 16.5 million shares to cover his salary. If total salary for staff $6 million per year, the Company will buy 600 millions shares from the market. It may take time, may be this and the next, 2011-2012 financial year. In June 2012 the Company could announce 1 cent dividend payment for FY 2011-2012.
4. Company will create Trust with separate account for holding and managing shares. Board, management and staff- all will be members of the Trust, everyone with different number of allocated shares. $6 million dollars could be transferred on this account on 1st of July2012. Trust may use part of this money to buy shares from the market in situations like now and sell later.
Trust on weekly basis could start to pay dividend instead of salary, but 10% more, from the 1st July 2012.
Shareholders could get their first half dividend 6 months later and the rest after 12 months. This is because too much money will require to pay all at once.
5. The Company has $10 million right now. Part of this money could be used to buy shares at 4.5-5 cents. For all money they could buy about 200million shares. Higher grades will come soon anyway.
6. Dividend may be increased by 0.1 cent per year per share every year, if shares were held for one year. If shares were held for less than 6 month before dividend announcement-it should not be paid. In this case all members of Trust will get 10% salary increase every year and shareholder will get the same. In 10 years it will be doubled and it will be only for $59 millions.
7. In the case of very good production results Bonus dividend payment may be announced on top of base level.
8. Production costs would be decreased on the cost of salary (theoretically.)
9. The main shareholder will be the Company about 20%.
10. I don`t know the implications of Tax and Corporate Laws regarding to above said.

Best Regards to all.