You know Danny having a logical and civil discussion with these...

You know Danny having a logical and civil discussion with these naysayers (US&Oz) is like trying to play chess with a pigeon — it knocks the pieces over, craps on the board, and flies back to its flock to claim victory!

Here is my view/opinion of CYL’s T/O bid for SGI:

SGI’s share registry is non concentrated and fragmented. VAN on the other had a concentrated registry. CYL’s well executed strategy for VAN had arrangements with the Top 10 SH, Financiers and creditors before the bid was launched. Hence 65% acceptance pledges were in the bag. With SGI It would need a coordinated effort to form blocks to ensure a ‘no’ vote gets up. The aftermath will be interesting though as they say, ‘be careful what you wish for, you might get it’.If the ‘no’ vote gets up the current BOD and CEO’s positions will be untenable, and they will be forced to resign. Golden parachutes will further drain cash flow. It will take SGI a further 8-12 months to replace the BOD and CEO with suitable candidates that the institutions will accept. Look how long it took for the company to find Bradbrook’s replacement in the ‘calibre’ of Jordaan. Tamara Brown will be gone. Market sentiment abhors a vacuum. Look what happened when talks went cold with CYL a few weeks ago, the share price went spiralling down from 34 to 25 cents. Furthermore, whether shareholders like it or not the market has already been telegraphed by the unanimous bid endorsement by the BOD and CEO that SGI’s value (with a premium of 50-60% to boot) is circa. $50m MC! I have respect and feeling for most of the SGI shareholders. The majority have invested in SGI for their pension funds.However, IMO if the ‘no’ vote gets up and in the absence of a better offer (Director, Tamara Brown tried to sell SGI when the going was relatively good in WA over a year ago, ONE offer Vango. It was rejected) one needs to be prepared for a sub-20’s share price. Auramet’s gold loan arrangement (unless extended) will limit much needed further funding as they have 1st dibs on all of SGI’s assets which leaves capital raising which based on my reasoning above will have a strike price around 18-20 cents to make it enticing for investors weary of yet another turnaround story.

Regardless and in MY OPINION, I would, despite my preference for a quick T/O by CYL to enable Marymia’s gold to be finally processed, would like to see the ‘No’ votes win. I believe SGI with its badly managed haemorrhaged operations together with extremely limited future funding options is way over valued at $50m. But then again what is a lousy $20-$30m when you have a billion-dollar company to look forward to!