Ann: Quarterly Activities Report December 2018, page-2

Amigos, after reading the BPL and COB quarterly reports, I think there are some very strange things going on. In particular, the financial reports are enlightening.

According to COB's report, the expenditure on exploration was zero dollars in the previous quarter! And what about the previous 6 months? Zero. Isn't that strange? They spent $3 million in those 6 months as payments "to acquire non-current assets", so I'm guessing that the money went to the JV for exploration, but am only guessing that COB manages its accounts that way. COB plans to spend $3.3 million on exploration in the January quarter. (In comparison, BPL did very little and plans to do very little.) But let's get to the point. In late-November 2018, COB as interim JV manager (or JV manager, whatever), made a cash call on BPL for about $1.5 million for the JV exploration which they had already started in early-November. However, exploration ceased for COB (and BPL) because of the drought. Also, COB has been denied access to the tenements because the landowner basically has its agreement with BPL not with COB. Yet COB tried to gain access to the land without including BPL. That's a real no! no! It's comparable to a person allowing a mate to come for a cup of tea, then finding that instead of the mate, an enemy of the mate turns up with a mob of bikies. (Not quite, but you get the picture.) Anyway, I have digressed. The JV agreement allows the manager to receives payments to cover monthly expenses. I can't see where a cash call of such magnitude is warranted, especially given that no exploration is possible. In the meantime, board members of both companies are receiving hundreds of thousands of dollars for doing what? Nothing much! Finally, both companies are claiming that they have a certain percentage of the JV, and in particular COB is claiming 93%. Well, if they really own 70%, then isn't COB being quite dishonest and misleading to it's shareholders? Amigos, if anyone has improvements to my understanding, I would welcome it.