Ann: Non-Binding Indicative Proposal from Rivet Group, page-40

Thanks all for your thoughts.

In April it seemed very believable GCY could generate good cash each quarter (helped by good hedges), pay off the debt and build maybe $10m a quarter towards future exploration and development. The exploration and development had time to happen. I don’t think anyone was saying that GCY was ‘flighting for its life’. The bear case was that the exploration just wouldn’t yield any good reserves in the medium term. And the usual risks around mining etc.

Now, there are just questions everywhere:
- Will the FFR deal get up? (Nov)
- Will FFR get the mining approvals and in a timely manner? (Mar 22)
- Will FFR deliver a reserve that is better than average at Melville? (Apr 22)
- Will the FFR reserve deliver the poured gold? (Sep 22)
- Was the June Qtr just a production glitch really and will Sep deliver better production numbers? (Oct)
- Will the cash generated for the next few quarters be positive after paying off debt? (Oct, Jan 22)

I think the share price atm reflects the number of questions rather than the probability of the answer being ‘yes’ to each one.
Agree with Speculator101 about the quarterly in Oct : I really hope that production is going better this quarter and that the stripping costs keep the cash in the black through FY22.

GLH,
pb