Ann: Investor Presentation - Diggers and Dealers, page-78

You're a toxic piece of work.

Being p!ssed off at management giving away shares at 33.5 cents is not living in the past. It's calling out management for destroying shareholder wealth.

At 33.5 cents the market cap is $2.28 billion. Less $500 million cash leaves an EV of 1.78 billion or $445 an ounce of reserve.

This is well below or around 32% the current margin reserves are making of between $1,200 and $1,500 an ounce. This ignores the 8 million ounces of resources and the plant and equipment.

Furthermore you're claim that the company hasn't raised capital since 2014 is incorrect. It implies there have been no share issues which is wrong. Shares have been issued for Deflector, Rothsay and Sugar Zone and again heavily diluted for the merger. These acquisitions were not out cash alone.

RED has good assets, good margin and strong cashflow. There was no need for the raising even if they want to merge with Genesis which appears highly likely.

I would have preferred the treasury shares be cancelled but at the very least they should have been sold for no less than 40 cents. Especially after Len Eldridge claimed there was no rush at last weeks Digger and Dealers.

Assuming Red was valued at a very low 40 cents a share, the boards impatience has cost the company around $44 million. This is nothing but the middle finger to all shareholders regardless of which company they initially invested in.

Tonkin did a good job with buying Deflector and Rothsay. He has done a bad job with Sugar Zone and shutting down Cock-eyed Bob and Maxwell at short notice. He is also a poor communicator.

The reality is however, like every other gold stock, RED/SLR has benefitted from a much higher gold price. This is the major reason why the company is spitting off cash. Mt Monger, which is what Tonkin took over in 2014, now produces fewer ounces than it did in 2014. Daisy is unappreciated and Lorna Doone has no exploration done on it all. I've been calling for Flora Dora to be explored for years and the successful hits indicates this should have been done sooner. Tonkin has also burnt hundreds of millions at Sugar Zone for no result. Had he not bought that SLR would have had over $600 million pre merger. I estimate Sugar Zone has blown up around $300 million worth of cash and equity to date.

Having said all of that it is up to the Board to manage him. All of the decisions listed above can't be pinned on him alone. There are currently eight people on the board which is two too many in my view. If they had any sense of integrity at least two of them would step especially Quinlivan. It's also worth noting that the block of shares was sold without proper continuous disclosure to all shareholders. I find it hard to believe the whoever bought that block didn't do a DD on upcoming production in the next 12 months and that that information should be disclosed to all of us.

GLTA/IMHO