WASC award Superior the Dampier Plutonic stock., page-42

Danny, strange decisions were made by SGI management last year, very very strange decisions........SGI spent multi millions, totally depleting their working capital, to strip overburden from open pit ore that they wouldn't be able to use for another year or more .....makes no sense. SGI did the work despite covid raging in WA, and despite being unable to find a contractor to do the job....it being a shorter term job and all the professional contractors were able to get better gigs.....but they went ahead anyway, using whatever equipment and operators they could find and using some workers and equipment that were otherwise fully engaged in underground mining.....so SGI produced less ore from underground......and spent more than required doing the stripping.......makes no sense.
Anyway, suffice to say that, in 2021 SGI made over US$13 million......it's a profitable operation.
In 2022, they made bizarre decisions and managed to lose US$ 17 million.....though that does include 12 million of depreciation/amortization....totally exhausted their working capital and had to borrow to keep going.
Bad management, or ?
We would appreciate, btw, if CYL/vango would pay us the legal costs as ordered by the courts. After, I think, 6 years of legal battles, SGI has won every single thing they went to court against vango for, and the courts have ordered vango, now CYL, to pay most of our legal costs.
I digress....my point is, SGI, when it makes rational decision, is a profitable gold mining company, is quite capable of continuing and prospering without CYL, and is worth, should we accept an offer from CYL, a great deal more than has been offered.
All, imho.......and if you disagree, that, as they say, is what makes a market.
Cheers