Ann: Gascoyne Resources Update, page-19

A company doing well-

A couple of points

WA is in the middle of a boom! Record high commodity prices and record infrastructure spend. WA is also high susceptible to cycles and so is NRW. The last couple of cycle booms ended very quickly and NRWs SP also went down very quickly along with its order book and margins.

So what happens when the latest round of North West infrastructure spend is completed? NRW and BGC will be scrambling for lower margin work as will all the competion, the exact same thing that has happened twice in the past 15 years

In WAs current "boom" NRW has 2 mining jobs-1 company is in Admin and the other was very close-but both still going. Luck

To me this goes to the heart of the NRWs problem-Management. Growing for the sake of growing is just plain stupid. Under current management NRW is going no where. Yes the share price may run up temporarily but it WILL come back down.

It is too leveraged to cycles and management can not see this

They may have bought RCR however this will no material effect now or in the future

And large public roadworks projects-Have a look at the others who have done this and are doing it and have a look at their margins. Some gone broke, those that are still there work for losses or razor thin margins including the partners in both large projects they have entered into JVs with for Bunbury and Freeway north

NRW need a management change.

And for the few daily long winded posters on here before you start your tirade take a look at the history of MIN. Been around approx. same sort of time, same space, same market, started private very small before floating, VERY different outcome

Take a quick look at MC of both today and both 10 years ago

One big difference-MANAGEMENT

Yes they haven't gone under like Brierty ( I know a few are well versed on them ) but they were completely mismanaged and funnily enough by a ex NRW guy

Shows the difference management can have - on a scale of MIN being 1 and BYL being 10 NRW at best would be a 5. As a shareholder you want to invest in companies that have long term abilities to generate constant divies and SP appreciation. NRW is far from that

And then there is the point of the CEO selling shares at the bottom. Shows a lot of confidence in his own ability