Ann: Entitlement Offer Shortfall , page-31

Hi Len-Hun,

I don't understand your conclusions here,

"Part of the funding will be 50 million debt drawn down RSG has in place.. I think that in itself might blow holes in the notion of a CR.. As how would RSG fund more capital to partake in the CR in order to keep their holding of the CN's not becoming to dilutive..."

RSG has debt financed $50M of the $85M, through Barclays & Investec. Term is 3yrs. This leaves RSG with solid cash reserves & operating capital.

As at 30.12.12 RSG had $108M in cash, bullion & liquid investments. NPAT 1st half FY13 was $96.1M. 206Koz at cash cost $787/oz.

If they want to underwrite a CR to NMG, they can do it from petty cash or I'm sure Barclays/Investec will gladly lend more.

NMG CNs are unsecured, but guaranteed by NMG subsidiaries (owners of assets).

A CR won't be dilutive for RSG, they will simply increase their holding. It could only be dilutive for holders who do not participate.

It's up to NMG to make a go of it from here. $20M Tranche B is still available. Chuck is gone at long last. My concern is in the short term, Tunku (wasn't he standing down?) & Brian Thomas are running the show, and, imo, we may be no better off.

Good luck all.