Ann: FAR update, page-18

I have just read the announcement and to say I am underwhelmed is an understatement...

FAR management and board have had months to address several important issues with concrete steps and do not seem to feel compelled to do so.

"Extraordinary times require extraordinary measures" but I see no evidence FAR is taking the required measures, the announcement indicates (to me) that FAR management are like a deer caught in the headlights.

Other companies have reduced board and management salaries by half to "preserve the companies cash", where is this announcement? Why is FAR special? FAR should put itself on a care and maintenance program for the next 6 months, and it's expenses should reflect this.

"Challenges to our debt process", I hope to god that the $300m is locked in... I also understand anecdotally one potential mezz provider declined to provide mezz capital since they had limited confidence in FAR management. FAR have had years to get this sorted.

FAR has so appallingly diluted it's shareholders that there should be no question of future Capital Raising that involve share issues, unless at a substantial premium to 10c per share (unlikely in the current scenario I agree). Far management have consistently provided lame excuses for not raising at a premium. FAR should work with the capital they have, live within their means rather than continually kicking the can down the road and rationalising it to themselves with patronising comment's like FAR Chair's AGM 2018 ones about the importance of shareholders demstrating "patient capital".

The only option is to cut salaries and staff to the bone to preserve cash at this time and demonstrate at least a modicum of alignment with shareholders interests; significant shareholders should meet to put pressure on the board to enact this, under threat of a board spill if necessary.

This should happen in parallel with significant shareholders meeting to identify a better management team to replace the current one over time. Obviously there is no point replacing the current team with a bunch of untrustworthy spivs that don't have the FAR knowledge or relationships, or SH interests at heart, this could make the situation worse. If a change happens, there should also be effective hand-over and transition, with keeping key management staff (maybe in different roles) as needed.

If FAR can do everything to preserve capital, look to reduce Sangomar costs (WPL may be less inclined to allow the gold plating of contracts now they are also suffering) and not go out on any new adventures, they have a good chance of thriving when Russia and Saudi finish with their games and CV settles down over coming months / years. It requires significant shareholders to get together and coordinate, will this happen? are they motivated to do so? This is the question.