my take on the meeting

I asked a number of questions though as i suspected, the board weren't about to give much away. Below is a general summary.

The board believes:

GPN will benefit substantially from any deal involving YRR and most likely Chinese.

Future income from gold royalty is assured. 68,000 oz was produced by Croesus prior to MON taking over. 100,000 oz has to be produced, after which time GPN gets a 6% royalty. There is at least another 70,000 oz outlined by MON to be mined.

30% free carried uranium j/v with MZM has potential

Peak Hill j/v with AGU preserves GPN's money until $1.2m has been expended. Gold results extremely disappointing.


DM talked of GPN's diversity being its strength going forward. As YRR is the best assett GPN has, i questioned the board's decision to dilute GPN's share to 20% from the original 70%. DM preferred to see the dilution as merely GPN being part of a larger asset base. No more acquisitions, except maybe another 20% of Apogei. I guess there is no need as they have taken most of the value away from non-aligned shareholders already.

I asked how the board determined the value of Cabe and Australian Uranium to be worth $69m, as it is unproven land. DM said they considered it to be worth that amount because of its prospectivity. I then asked a second time how they ACTUALLY worked out the value and did they take into consideration what other companies in the same areas such as TUC, KOR and EME had paid for their land, but once again was given the same pathetic answer. My point was that by giving 130m shares away for unproven land, YRR has given up 65% of Gabinintha and Nowthanna to the new s/holders, who in effect get to keep 65% of the land they vested into YRR.

(YRR has paid around 10 times more for land than their peers in the same regions. Its akin to paying 10 times the price compared to other houses in your street.) This particular issue was not answered to my satisfaction as there is no independant valuation or supporting information to adequately determine the actual market value. The argument by the board that shareholders voted for it is a moot point as anything put forward is going to be supported by the group with over 50% control. The board may wish to fob me off but i'm not going to let this issue rest as it is the crux of the problem for minor shareholders.

I asked what plan the board had for raising capital as GPN only has about enough to see them through to the end of the year according to the last quarterly report, which shows expected expenditure of $350k for this 1/4. DM didn't give a specific answer but said money wasn't an issue.

I brought up the fact that 5 of the 7 tenements Cabe have were held by Whitvista which also has connections with the other private companies. DM said he has no knowledge of Whitvista which i said i didn't believe. This wasn't pursued any further.

Most others at the meeting chose not to ask questions, but then many were beneficiaries of the free shares so no doubt they are quite content with the situation.

My personal view is that GPN will benefit from any YRR deal but has lost most of the 'blue sky' potential that it held before these deals diluted their YRR holding. 6-12 month wait before anything substantial may happen, though that of course is if the board can be trusted which i dont think they can. A year ago Peak Hill was going to do wonders but has now proved to be a virtual dud, which is exactly the same risk with all the new uranium tenements. I cant see how giving up most of our jorc resources for unproven ground can be a positive move. It is definitely positive for those given huge tracts of free shares for unproven ground which they had no intention of spending their own money on anyway

If i offended anyone at the agm with my line of questioning, i apologise. My venom isn't directed at those fortunate enough to get free shares but towards the board.

The 3 wise monkeys. Hear no evil, see no evil, speak no evil.

Anyway the future will eventually yield its secrets and the decisions made previously will be seen in their true light. May that day come soon.

There is no more to say on GPN/YRR that hasn't been posted many times before so i now bow out and leave it to those who wish to waste their time trying to put the facts out there.