Five takeaways from the Investor Presentation: you want fries...

Five takeaways from the Investor Presentation: you want fries with that?

• The presentation is generic (was not given at a conference etc, or else it would have been named) and therefore it was likely recently presented to existing major shareholders or potential new shareholders. Is it likely that this represents a precursor to a capital raising or placement at a discount to the current SP? With 750k+ shares on issue, does this mean a consolidation is in the making?

• The underground mining concept has now been downgraded to an “Opportunity to transition” and “potential” to mine underground. Nothing even remotely assuring. Combined with the Disclaimers at the end of the presentation (the longest I have seen for a while) the underground mining concept must now be firmly a ‘concept only’. The disclaimer should be read by any astute investor, especially the negligence clause. How this effects the future Reserves I do not know.

• The concept of finding some additional ore from the surrounding district is now confirmed. I cannot find any gold deposits within 100km that might fit the bill. Is this a way of gently letting Siana off the production profile in the future if such deposits could be accessed?

• The concept of the long-term tailings dam facility is confirmed in that only a “preferred location (has been) identified”. Once a location has actually been chosen and confirmed by geotechnical test work this may provide some more assurance.

• The issue of the east pit wall has been upgraded to “Geotechnical stability constraints relating to the East pit wall however continue”. What effect the inability to keep the pit floor dry throughout the year has on this issue cannot be ascertained.

• Summary: Underground mining, long-term tailings dam and additional ore from surrounding district are concepts only. Stability of east pit wall is problematic. CR is a possibility.