Gents and Ladies,
What ML's comments and the recent funds raising and taking on of debt (I will come to this below) means to me is that the mine can't be self sustaining and is a loss making enterprise as-is. In spite of all the lowering of goals and targets and inspite of the increase in gold price especially in Australia $, CTO still can't get there. "There" being all costs and operations covered and a small profit, a cash flow break even. Otherwise the $18M fund in equity and debt, would not have been sought. All along M.Lynch has emphasised how wonderful CTO management has been to avoid debt. Now we have some.
Now read ML's announcement again. Basically it says "Unless we get the extra mine areas underway, and we have $18M maximum to do it in, we are sunk".
This is where the debt comes to play. If CTO default the debtors call administrators in. The debtors, in conjuction with our delightful Chinese friends invited inside the tent willingly by CTO management thinking Jinqa was a patsy to bleed money from, buy the whole deal for cents on the $.
The way I see it we are royally screwed. The fiddling by ML and the Board, delays, wasting time while all the time saying "patient development blah blah.." suggests only shareholders have been patient. The whole development has been inept.
Removing the Board now won't achieve anything. Voting against options and shares, unless linked to $100 share prices, should be rejected absolutely for the Board and certainly the MD. Basically, lie back and think of England and hope for the best. CTO have just about run out of rope.
This short rant will do me for now. I will continue waiting patiently (that word again) for this quarter's report to see how much mining and progress has occurred. More comments then.
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