Ann: SALE OF BEATONS CREEK TENEMENTS, page-3

Gwil with all due respect, financial strife is not just raising its head now.

It raised its ugly head more than 18 months ago, when the company started failing to generate enough cash to pay its debt down.

Check out last six or so cash flows reports. Ugly!!

The company has been barely generating enough cash to pay its operating expenses let alone its debt and interest repayments.

The company has only survived on loans from IMC Resources - which is just about to sting us LT shareholders.

A company that generates $100+ million per annum, but only has a Mkt Capital of around $7 million usually indicates some serious internal issues rather than an opportunity.

Of course I shouldn't be too much of a smart alec, because despite all my tracking and analysis of Moy I've still been silly enough to have kept some shares in the company.

It's certainly driven home the fact that you need to invest in a company where the board and key management hold a significant financial interest in the company.

But anyway right at the moment the company needs cash more than it needs a 30% share in Beatons Creek.

Don't get too carried away by some naive Canadians - Beatons Creek is just a patchy gold deposit in the scrubby dry back blocks of WA. There's hundreds of them scattered around the outback - Moy's even got a couple. And all the talk of another Wilts is delusional.

So now Moy's got a bit of cash it needs to start partnering up with some companies with decent deposits, bugger all cash and no processing facilities. There are a couple in the area. But don't expect any decent announcements until after the vote on the IMC 3 cents a share takeover.