Ann: COVID-19 Update, page-45

The loan is owed by GMC’s 74.9% subsidiary PT Gulf Mangan Grup (GMG) which owns the smelters. GMG also owns the lease on the site and all other plant and equipment plus the DSO license. Security for the loan is the 62% completed smelters. So no recourse to GMC but it’s stake in GMG and its US$16m loan to GMG are GMC’s only real assets. Mgmt appears to think that it’s acceptable to continue diluting loyal shareholders rather than create cashflow via the DSO. Failure to deal with the loan conclusively will render GMC unable to attract further capital anyhow. I’d hate to think what GMC’s Auditors are suggesting and the audit of expenditure for the 19-20 year should make interesting reading. Quite frankly many are not only questioning competency but also sanity!