Ann: Quarterly Activities Report, page-40

I never said it is a good story. I already admitted a couple of years ago that I was wrong in regards to Mothae. Initially I thought (in contrary to e.g. ecat who was sceptic from the beginning) that Mothae was a good idea and it was a good way to generate additional cash flow to fund the development of Lulo and also to diversify the company. But then I realized that the "price" we had to pay in terms of dilution was way to high and we paid about half of our owning of Lulo to develop Mothae. And now as I mentioned above also the revenues are significantly below expectations. So actually it is quite a sad story that cost me and a lot of the others a lot of money. So the only benefit that remains is diversification and now a stable source of cash flow. But retroactively I would say it was not worth to do it.

Regarding Merlin I have the same opinion, in contrary to Mothae I was never a supporter of Merlin. So let's hope that with Merlin I am also wrong with my initial opinion and it turns to be a valuable asset.

In general the goals of the management and the shareholders are not fully congruent in my opinion. Management wants to develop the company and make it an important player. Shareholders normally are only interested in the shareholder value. Of course management has to have a vision and also have to take risks to develop a company and bring it forward. On the other hand as I aslo staed before I would wish that this development is a bit more careful and less funded by external money and more by cash flow.

And the - how you call it - narrative of increasing diamond prices is probably correct in the last 12 or 24 months, it is just the case that the initial assumption about the quality and size of stones was too optimistic for Mothae.