Ann: Quarterly Activities Report and Quarterly Cashflow Report, page-203

Really appreciate the back and forth between some posters here over the years - some insightful points from both sides and interesting to read the conclusions being drawn around our current station.

At risk of missing out on all the fun, I feel obliged to try and reciprocate by highlighting some pertinent factors which led me to my decision. This isn't an attempt to down-ramp, simply a summary and evaluation of my thoughts/actions:

After trying to rationalise holding on for dear life, I've mostly sold out throughout the week after accumulating over the past few years. Really disappointing as I had high hopes for the company but I need to focus on capital preservation at this point - some good lessons learnt, something around counting eggs?

For me, I see the short-term outlook as extremely weak and the longer-term outlook as challenging - this deterioration fundamentally changes my investment thesis:

Short-term outlook = Extremely weak

• Debt repayment will be ultimate priority -expect Macquarie to be circling…
• Hedge book accounts for 75% of sales - muted benefits from high current POG and very slim margins at upper end of AISC guidance
• Operational issues (obviously..). I'm less concerned that they encountered issues when developing a plant/mine - my concern is the loss of management credibility, given the guidance and indications we were presented with late last year. I now find myself taking CAI's recent assessment of issues and their severity with a grain of salt, whereas previously their track record warranted them more leeway/confidence (so I thought)

Long-term outlook = Challenging

• Original thesis was CAI would have an efficient and profitable mine, providing them with the FCF to pursue the additional growth projects they have available to them.
• This was where I saw the value to be, beyond the standard bounty for commissioning a successful project. They have plenty of appetizing growth options (Warrawoona expansion, Lithium, M&A), which all stem from having a productive cornerstone asset.

The product of this is a drastically changed risk/reward proposition:

• Downside risk is large, with losing everything a distinct possibility
• Reward is now limited, given substantially lower margin received across LOM (based on current evidence)

Moving forward, I will keep an eye on how things develop. I do subscribe to the belief that DR may be giving very conservative estimates this time around, after looking foolishly over-confident late last year given the findings in this quarterly. I do feel for DR - everything was going swimmingly, right until it wasn't!

Good luck to all - been a hell of a ride!