time to start looking at the facts ...

It is about time we talked about the facts here before we have to hear more slagging off about management from Victorious and Co.. see below for some FACTS about what has gone on since July..


1 delay in the signing of the sale and purchase agreement

This was entirely driven by the vendor peabody/winsway. Peabody had been selected as developer of the biggest coking coal deposit in the world. Tavan Tolgol valued at $15b ( expected ipo in march). Their legal department put the CEO tenement purchase at the bottom of the pile. Lets not forget Peabody also just bought MCC for $4.8b .. Peabody mkt cap $10b .. CEO $50m .kinda david and goliath stuff.

2. delay in release of information regarding tenements

This was also driven by Peabody . A confidentiality agreement was struck as Peabody was paranoid around the sensitivities of the Tavan Tolgol negotiations (remember worlds biggest coking coal deposit). CEO had to comply or they wouldn’t get the licenses.


3. ASX Listing Rule 1.1 condition 11 .. options
" If the entity has options on issue the exercise price for each underlying security must be at least 20c in cash " .. current exercise price of the options is 1c.. therefore a 1:20 consolidation needs to occur in the options which also means a 1:20 in the head stock .. THIS IS AN ASX LISTING REQUIREMENT and options listed pre Mark Early days.

4. ASX listing rules in regards to raising capital
ASX requires a company to issue a prospectus when a company is undertaking a change in activities when they are to raise capital. The policy is designed to ensure the entity does not circumvent the requirement by raising capital prior to listing and using an information memorandum .THIS HAS PREVENTED THEM RAISING MONEY AT ANY EARLIER STAGE. They needed the prospectus and they needed the information that was under a confidentiality
Agreement to put in the prospectus.

5. Selection of Brokers and Corporate Advisor

There is currently no one better than Azure Capital to advise them in Australia right now given their ability to list and then find Banpu as
A shareholder and then advise on the takeover of Hunnu. Patersons had to
go, they were dumping stock before anyone had been appointed as they moved
Onto their next play thing. You could argue they are responsible for artificially ramping CEO stock in the first place. Yes maybe they should have had a small role but that is now history. BGF has a well respected domestic franchise and
Have good relationships with all clients who invest in emerging resource names.

6. State of the market and raising capital
Northern Iron raised money today well short of what they were looking for and Their largest shareholder didn’t subscribe (he owns 26.5% ) BSL tried to raise money at a 33% discount and Credit Suisse ended up with all the stock. Despite Mark Early commeting he had a lot of interest, you must remember Coal has the highest beta to market , sure its great on the upside but the downside can be just as bad. Institutional client DO NOT want to strap on risk when politicians (Merkel and Co) are effectively running the markets and we are potentially staring into European Financial Meltdown. Memories are fresh of 2008 and bonuses for Financial Managers are payable Jan/Feb..
Why take risk now if you’ve had a good year?? Markets are effectively shut
For raising capital ... seen any IPOs lately ?



We have been completely screwed by situations that have been outside the company's control. I don’t believe they deserve their option package but I also don’t believe this criticism is warranted. At the end of the day there is quality coal in the ground in Mongolia that is worth A LOT more than what the market cap will be when this company relists.