Ann: Change in substantial holding, page-27

Keep your hat on col, as you are aware management have taken this outfit from a basket case in 2014 to a gold miner that’s on the threshold of becoming a major gold producer. That’s from sub 5 cents to, even with today’s hammering, over 20 cents. As I’ve said before, we’ve been smashed today and we’ll be smashed again in the future.
This is not a fairy tale, it’s a real life business. Do you think things run smoothly in the business world. Well they don’t. Just ask any of the hundreds of SME’s that have gone belly up in the last three months. And through no fault of their own.
Red have taken two, almost derelict, mines with a plant, with a name plate capacity of 800,000 tpa, that was running at 600,000 tpa and turned into a 1,000,000 tpa operation. It’s an old plant running at 20% over capacity. There are going to be hiccups.
Management are squeezing Darlot as hard as they can to get every gram of gold they can out of a costly UG operation while we are transitioning to low cost open pits mining. Again, there are bound to be issues. To get 100,000 oz pa out of a plant with a 800,000 tpa name plate is exceptional. I’ll gladly settle for 90,000.
And KOTH. Bulk stoping was always going to play havoc with grades. Management should have seen this coming. For this I’ll give them a big fat zero. As we transition from a supplementary feed UG operation to a stand-alone, predominantly OP operation, once again, there are going to be issues.
No col, I don’t think management are useless. They’ve made me a millionaire. I look at the strategic accusations we’ve made and the schedule ahead of us with confidence that in two years we will be pumping out 250,000 oz pa. It’s not going to be smooth running so I’m not going to bitch about it. Management have my vote. Go and bellyache somewhere else.