Ann: Becoming a substantial holder, page-16

Good morning folks.

If you were Pacific Road and had 36% of a company that that was now worth over $150 million, substantially up over what they put in less than 5 years ago, and knew they had the ability to sell all their holdings with little disruption to the company before the EOFY. I can see why they have done it. It's a bloody good profit. Think about how amazing Pacific Road is going to look as a fund manager on the local rankings. Performance over 1, 3 & 5 years will be pretty good.

They can legitimately claim they identify small companies and actively participate as a shareholder. If it wasn't for their backing Aurelia may well have have gone under.

Having held shares in company who had a major shareholder owning over 35%. Then they suddenly offloaded their holding to a large Chinese miner who subsequently launched a low-ball takeover was a horrible outcome.

Now we have a number of fund managers that own Pacific Roads stake and dilutes this possible outcome. I would have expected JP Morgan to have sniffed out the possibility of a large buyer wanting their whole 36% if one was around.

Personally I'm very pleased to see a spread of instos now on the books. It gives us some protection from a low-ball takeover. Perhaps in another year when the market sees what the consolidated mines actually produce, cash flow, exploration plans/results we might be more attractive than we are today. If not I'm looking forward to a multiple dollar share price.

All the best.

KKR