Ann: Half year accounts, page-71

Spot on Danny but I will go further: Over 6 years ago SGI paid a premium to NST of $66m (plus shares) for Plutonic Dome. More funds were required to prepay royalties to NST. SGI misses 5/6 revised guidance’s. More cash was raised to meet the requirements of the first Auramet Gold loan which had harsh put and call options that bled even more cash. New CEO Chris Jordaan comes in with more excuses for future missed guidance’s: Strategic planning disruption, Extended planned maintenance, Rain, COVID and staff shortages. All this despite persisting with Main Pit Deeps project, which lost $15 m. The previousChairman and CEO resign, NST (a multibillion $ gold producer) sells out as major shareholder of SGI @ 66 cents, NST director resigns from SGI board, NST Warrants expire with no take up at $1.50, the whole of the executive team and directors hold less than $65k worth of stock, the executive team are on extremely high wages (most with golden parachutes), director Tamara Brown who earnt IMO an exorbitant amount for 10 months’ work as temp CEO in 2021/2 travels to WA to put up the ‘For Sale ‘ sign when things were relatively good at SGI ! No takers! CEO Mr Jordaan replaces Ms Brown with a guaranteed payout to 2024 for whatever reason if terminated. Enters into a 2nd Auramet gold loan that will partially suck up the next 18 months of production waiting for another turnaround story to eventuate. Currently as at the end of 2022 SGI is losing US$200 for every Oz they process. SGI tries in vain for 5 years to get high quality open ore from Vango to overcome their own drilling program disasters. Fail. CYL succeed. Game over!

Furthermore, SGI completes shutdown of Hermes pit which will require $30m plus in rehab costs. Jordaan then enters into 3^rdAuramet Gold bridging loan for $5m for operating capital until CYL transaction is complete (so much for being cash flow positive).

So, despite all of the aboveit is bewildering that SGI ‘no’ voters are accusing CYL posters of spreading FUD or misinformation about the feasibility of CYL’s takeover bid of SGI. But the biggest play for ignorance of the year is with the ‘big elephant in the room’ and that is there is100% UNANAMIOUS and UNEQUIVACOL SUPPORT and ACCEPTANCE by SGI’s OWN BOD’s, EXECUTIVE MANGEMENT, MAJOR SHAREHOLDERS, and CREDITORS for the merger! Stop shooting the messenger!

So, IMO they can either vote ‘yes’ and have a smooth and orderly transition to the new order of things with a well-financed company with expert mining personnel together with tremendous future upside or Vote ‘no’ where you will see IMO SGI enter into voluntary administration within 6 months or less. CYL will then pick-up SGI for pennies in the dollar (my preferred option).

Given that the are no other third-party offers what choice do you have?DYOR