Ann: Chair's Address to Shareholders, page-95

255m is here nor there. It's relative. The market cap is what matters, and also any dilution from this point on.

Buying back 5% delivers value relative to the proportion, not the absolute number.

Management themselves will decide whether buy-backs, dividends, debt repayment or re-investment is smarter when they have a surplus of cash (which is doubtful right now, when they recently did a raising, have lots of CAPEX to pay out, and still have an outstanding short term loan) . As long as it's not a raising, or an expensive loan, we're good. (We already have an expensive loan, so as long as that gets paid off.)


Rather than LG accusing management of lying more, let me check the announced numbers myself.

Until 29 Nov -

(This is not verbal at a meeting - this is a hard release through ASX. They cannot lie here or would be punished. If noticing a mistake, they have to release an update ASAP, and they have had enough emails to have realised if there was a mistake.)

Until 2 Nov -


Until 29 Sept -

Sept Quarter -


July, Aug, Sept - 8341oz (2780oz avg), 82.2% recovery, 0.45g/t.
October stated as >3000oz poured, 83.4% recovery, 0.46g/t.
November (days 2 through 29) can be inferred as >5150oz, 85% recovery, "all from the low grade stockpiles 0.44g/t".


Chairman's address seemed to deny the use of Quartz ore - "all from the low grade stockpiles". So how can they produce 5150oz? Pouring a backlog of gold concentrate? Makes little sense to have a backlog since the cashflow is desperately needed. Grade is low as usual. Recoveries are up somewhat. Grade and recovery cannot explain the increase, so some other explanation? Eg. plant 2 contributing in some half-open fashion? Doing a manual clean-out of built up gold somewhere in the plant?

So I can't tell whether it's a one-off or ongoing >5000oz per month. But it should be a true number for Nov, so should provide a boost to cashflow worth the gross profit on the >2000oz surprise.

They should have provided an explanation, or somebody should have asked the question at the AGM - "Please explain the >5000oz poured in Nov."

The long cashflow cycle means high outflows for royalties in Nov, but in around Dec-Jan, cashflow will catch up (from the 2000oz surprise) and I'd hope we then have some excess to reduce the short-term debt.