broken promises

Fellow Shareholders

I enclose a letter I sent to Frank on the 13th July:


Hi Frank

I rang you on the 27th June and you informed me that you had just been to Beijing and that you had had a very good trip..

I was therefore surprised to see today that Luo Tao (the Non Executive Chairman)is now standing down. After Peter Shou (the ex CEO), that's two top people out of ORDs team.
(This is coincidently after i had asked on two previous postings on HC for Mr Tao to step forward and explain what is happening at ORD)

Mr Luo Tao was actually one of biggest reasons i have been a loyal ORD shareholder for five years.

With no movement on SARCO.. I am now very concerned what is actually happening at ORD. I even asked you 'were you going to drop SARCO'.. A funny question indeed, but that is becoming a major concern for us investors; and after seeing our share price plummet so dramatically..especially after the selling of shares on 24th October 2011 on news that obviously some people seemed to know the next phase of ORDs long inactivity ie: delayed drilling at Supperjack, delayed BFS in Laos, proposed IPO delay of SARCO, JV delay & then complete failure at Copperflats, the non existent $10m credit line with NFC, a planned future CR instead (ie shareholder dilution), CEO departure (like the Captain leaving a sinking ship! Where has Peter gone to that was so important?) and now Taos departure, etc.
(And now, the lapse of the open dated Caledon option).

With the departure of Luo Tao, one wonders if ORDs relationship with SARCO and long term chinese partners are diminishing/finished..

Could you therefore please clarify this point for me. It would help me understand what to do with my 3m shares in ORD. Or, even to add to them, if you can give me some confidence.

I realise that under the current macro climate, its very tough out there, nevertheless, China consumes vast amounts of commodities and the recent Mines and Money Shows in HK and Beijing only help to reinforce this belief and knowledge. Where was ORD, i did wonder, if they are serious about raising $200m this year or even next year?

Please Frank, can you take a few minutes of your precious time to let me know what is happening at SARCO at the moment (ie why is there a permanent delay on the BFS) and what the practical outlook/intentions are for the short & medium term future of the inground value of $12.5 billion of bauxite and a proposed $300m turnover alumina smelter.

Also, I thought ORD had $4.5m in the bank at the moment. Where has $1.5m gone recently (you didn't post any accounts last quarter)

Thanks very much


Best Regards




dw



I never got a reply to this letter. However, I phoned up Frank a few days ago on the 1st August and he said that he would contact NFC to see what was happening on the delayed BFS at SARCO..! He didn't mention the lapsed Caledon Option..

If the SP has not dramatically improved by the AGM, then i suggest we all attend to get some redress & satisfaction..