Hello Musl,I have not discussed any unexpected costs at CRE....

Hello Musl,

I have not discussed any unexpected costs at CRE.

Capital raising of smaller amounts was of course considered. As I understand it DT did discuss this as well. Smaller CR's at a discount with insto's that consider us a short term investment was not thought to be in the best interest of shareholders. You get more disruption, a smaller outcome and added down force on the SP so not desirable.

Down force from DBank as their situation changed has been a major contributor to the sinking SP of FML. That set a trend in context of a sector down trend.

The Laverton field was a major WA producer in earlier years and Barrick + other large players have done very well there. It is elephant country and offers deposits like GSmith, Sunrise Dam and even some like RRL's Moolart and Garden Well.

CRE were unsuccessful and FML have turned it around and need to get on with it. That achievement, from where it was, to where they are now with stabilizing grade delivery, mined material, development, ROM stocks, falling cash costs and delivery is significant. People who call that a shocking outcome need to look closer at operations IMO - am damn sure SGG looked favorably on that performance.

More work to be done, but on the way, and the upside is very great when you look at the geology. Yes the market considered that a high risk move, Stone interfered with the process, DB started selling down - all contributes to illusion of failure when insufficient understanding is applied.

Next FML acquisition is preliminary IMO, unless it came with milling capacity and was immediately value accreditive. They will be working on drilling the prioritized targets in a quest for grade and to expand capacity to get to the higher revenue base as explained by DT.

Of course Nepean and Lake Cowan will be a priority as well. SGG will be a major input on executive decisions, planning and working with the BOD to increase revenues, assets and shareholder value. Of course SGG will have influence in every move from now on - talk about skin in the game.

Somebody asked why Goldfields or etc have not taken us out based on Lake Cowan - answer is simple they are all awaiting proof - deposit drilling not geochem etc work which just defines there is something there of scale.

Back to my day off - regards,
CW
DYOR&DD