This is my last opinion piece (on holidays) before the T/O vote...

This is my last opinion piece (on holidays) before the T/O vote which I hope posters will consider when the inevitable barrage of fear porn goes into overdrive a week out from the vote.

To begin with please be aware of the deficiencies in TSX reporting requirements. Firstly, ASX would not allow a non-industry standard for resource conversion to be used in reporting or omit All-In costs (ref: “All-in costs are not required to be publicly reported) or the continuation of solvency issues where “AISC costs are consistently well above gold price” or being up to 5 weeks late in submitting reports. ASX would immediately suspend companies for any of the above breaches (and SGI holders want CYL to dual list on TSX -no thanks!)

The last financial and cash flow report dated March 2023 showed substantial losses ($7.3M) and a negative net cash flow (minus $2.3m). Once again no updates for April or May.

Regardless, how will the following be funded, paid or guaranteed if the ‘No’ vote wins:

· $30m mandatory rehabilitation cots for Hermes closure.

· BOD golden parachutes circa $5m.

· CYL T/O termination fee of $2m.

· Est $2m to fund legal costs re High Court appeal.

· Cost (and timing) of BOD, Executive and staff replacements.

· $5m Electricity bond for continuance of supply.

· The $5m overdraft (fully utilised) from Auramet which expires and must be fully paid immediately if the ‘no’ votes win on 26/6/23.

· Current liabilities $38m

· To continue immediate operational activities Est $5m

Ironically much was made by one poster on solvency and credit rating issues. Billabong Gold Pty Ltd is a 100% owned subsidiary of a foreign owned TSX publicly listed Superior Gold Inc. The D&B reports on both are interesting especially in comparison to Henty and CYL (I cannot repost for copyright reasons.) Regardless, it is obvious at this stage that Auramet (not SGI or CYL holders) is in the box seat. Auramet is a lender of last resort; and being a lender of last resort, it has SGI over a barrel:

· Requires to be paid in gold regardless of SGI losing approx. $100 for every oz it produces.

· Requires from SGI minimum liquidity levels as set by Auramet.

· In case of default has 1^st dibs over SGI’s assets.

· Requires SGI to establish and fund hedging arrangements (insurances) that benefits Auramet.

· Severely limits other funding arrangements other than Auramet due to the above conditions.

IMO I have never seen such a dire case of P&L and Balance Sheet figures in my career.

Therefore, In the absence of a late hail Mary funding alternative the outcome is clear: CYL or bankruptcy!

Regardless do your own research. No one should rely on any posts (including mine) on social media. Go to the source, DYOR and come up with your own conclusions.