View attachment 1416619I have a few queries (obviously concerns):
1. where is the IER (expert's report) and the Notice of Meeting - 31 Jan is 15 days away.
2. So, Rogers was (then) in the
final stages of agreeing terms of the loans - are they now agreed - why haven't shareholders been advised. Why would lenders lend if the terms are not agreed?
3. So, Gandel is to be granted a unilateral right to convert the notes to equity (at 0.0044 I gather?) - bang, there's the game over right there - how would an independent expert say that is fair or reasonable on the vague terms we know of thus far......?
And remember, CTL should provide a quarterly report on or before 31 January - will it show profitability?
As others have speculated, with the much hyped 5 g/t + grade they stated they were now mining and the rampant gold price - 1795 AUD over night but for the December 2018 quarter?
But for the quarter - 90 days to Dec 31, let's assume the average spot prices is only 1725 (rough guess) - see chart below - 40,000t x 0.9 (recovery rate) x 5g/t x 1725/31.1035 = $9.98m revenue. About 5800 oz (recovered). What - circa $2.5m free cashflow?
If grade was 5.5g/t - revenue jumps to $11m (10% up). Etc.
1.5 quarters on those numbers and ALL debt is cleared but it's really doesn't fit the 'agenda' (imo) to start showing ripping profitability right now. does it? Would put an independent expert in an awkward spot?
View attachment 1416621And what were the extraordinary 'fees' that Rogers appears to have agreed to pay the new note holders - 20% of the loan amount or the like? Wow.
4. Ultimately, when this story gets looked at by ASIC or through a court process, I want to know who else Rogers talked to about paying out the original Squadron notes....
There are plenty of rich folk around, bullion and streaming entities, funds etc - $2.5m - which could have been readily secured against the company's assets - is chicken fees for these folk....with huge upside.
Or was Gandel the only port of call.
