Re: The Annual Report

Thanks to q asking about AGA (Anglo Gold Ashanti), I decided to go over the AGM for some definitive answers and along the way, I was reminded of the dramatic intervention of Joe Pinto when he took over running OGX:



A few things spring to mind, and they are just as relevant now as they were then.  Joe took over the reigns when the situation was dire and who knows, we may have been only weeks away from losing OGX to AGA and or Cartesian Royalty.  Since then, Joe has taken bold decisions designed to cut executives pay and align them with the interests of shareholders.  In short, this means that when the executive team make it big ...so do shareholders including Joe.  If we get great production of the ground as I believe we will, the executive team stand to make millions in shares.  Lets also remember that these share are subject to escrow.

I also note that Joe has practised as a solicitor and as a barrister in the supreme court of NSW since 1983, as well as holding a degree in Commerce and as well as being our 2nd largest shareholder.

He has it all on the line for OGX as we get the benefit of his professional expertise and guidance and there is no doubt in my mind that he has the vision and the intestinal fortitude to help make us the "highest grade gold producer in South America" as he has said.  Thank god we have Joe.

Executive:

I also note that Jeremy Gray has been involved in mining for 23 years and previously ran the Mining Equity research Team at Morgan Stanley.

Mr Terry Topping, appointed in April 2017 has 30 years experience as a geologist and Helico Guerra appointed at the same time is a metallurgical engineer (handy knowledge to have crawling  around while commissioning the processing plant ) with 30 years experience as well as previous positions in Anglo and government contacts.  We also have independent consultant and geologist on behalf of Cartesian with 30 years experience and Nicholas Revel a gold and iron Geo with 25 years experience previously as a technical director.

Management:

As well as our Brazilian Geo's ....the eminently qualified Dr Klaus Petersen and Marcello de Cavalho (produces good work ...see posts re: Brazilian Journal of Geology paper, we have mining engineer (Expat from UK) Richard Crew, was initially General manager and then appointed COO.  Richard is credited with coming up with the idea of trying a hammermill ...and the rest is history in the making.  Thank God also for Richard Crew.

So what's my point here?  My point is that ASSUMING we get positive news regarding production, OGX is poised to capitalise on it's current position with a considerable re-rate.  

We have:

• The expectation of being cash-flow positive this month.
• Continuation of excellent mineralisation results from Mestre.
• The funds to stay solvent for several quarters even without being cash-flow positive.
• The knowledge that it is even possible to reach up to 1000 Oz / week (quote from Jeremy Gray) in very favourable areas of underground mineralisation.
• The expectation of at least 200o Oz for June production
• Very promising results possible from both Antena and also Eliseo in the short term.  
• Drilling commencing at Cascavel, Cuca and Sertao this month.

We are currently in the SP doldrums waiting to see the colour of the gold, but when it arrives, our other great news will act as a SP slingshot IMHO.

I also note that we have a good relationship with Anglo our largest shareholder, and Jeremy has made it clear that any negotiations with a major will involve shareholder value being maximised.

q might be worried about AGA right to negotiate with OGX (and I think he is entitled to continue to be worried about it if he chooses) BUT I certainly am not worried in the slightest.

I think we can all see fear being pedalled when it happens.

All good.

anyway ...that's essentially why I'm not planning on selling in the foreseeable future -it's a big-picture thing. Some of you might not see it or may disagree -who cares ...we all see things differently and you are entitled to your opinion.  


Cheers holders,

SJB