Lifeline Australia - 13 11 14, page-33

i guess we know the issues that led to a disaster auction. if i was a buyer and wanted to inspect a a bag which was meant to be all one quality and i found the bag mixed with dark, pink and nearly clear rubies i would be like how am i meant to chose or buy or...bid for the whole bag? and then i went to the next table and it was the same thing in all 21 lots...i would be so pissed off and have just left the auction cursing management which is exactly what someone did thus the article which turned out to be spot on.

so lets put things in perspective
CJ like everyone else cares about his reputation, he truly believed this would be a success like you did too but he was lacking much knowledge about grading/sorting and what is in demand. good news is he has learned allot which is key for the next auction and they will have another auction except IMO it will be over 1 million crts including the 350k crts on hand. if you look at the auction bids for Gem field you can automatically see they had real professionals advising them. in 2014 they sold 1.83 million crts for $18.40 per crt  and received 33.5 million, in December 2014 they sold 62k crts at $680 per crt and received a total of 43 million then in april 2015 they sold 3.96 million crts of low quality rubies for $4 per crt and received 15.9 million and you can see their strategy here.

As they mine the separate the larger high quality stones and medium and low quality but they do not take everything to the auction, they must talk to their customers first and focus on what they are wanting or what the demand is for that month. they first sold the medium to low quality rubies but a lot of them for $18.40 average per crt while still holding the larger stones and cheap cheap quality stones... next auction they focused only on the larger high quality stones obviously still mining and accumulating cheap rubies.. if you notice in the December 2014 auction the only sold 62k crts but had 41 lots which tells how important it is to know what your customers are wanting and separate EVERYTHING and then a year later in April 2015 they sold all their cheap rubies for $4 a crt.

i know this info is meaningless to some but it just shows the lack of experience MUSTANG had. it also shows that there is still potential for things to turn around but some factors need to be met.

Is Mustang able to mine millions of crts per annum? (i think if mustang is able to mine millions say 5 million per annum the amount of high quality large rubies will be alot)

Does Mustang have enough funding to achieve this?

Did mustang learn enough from this and will it be put in practice in the next auction?

Will Mustang hire the correct employee which have significant experience in the rubies market?

If all the above is achieved before the next auction i think it will be a success though i do not believe mining 5 million is necessary in the first few auctions though it should evolve to that to become the next gem field.

My opinion do not panic... sell or hold up to you but chose wisely and do not base it on fear or greed.

cheese