Well, a month is a long time in the stock market. Wonder who...

Well, a month is a long time in the stock market. Wonder who knew of this bomb shell coming?

Obviously Frosty and Revlin, our spiv directors and partners in crime did. They're timing to sell a few million shares at the top was immacculate, based on knowlegde of what was to come and the short-term buying interest they drummed up with the last roadshow (alluded to here on HC).

Not stupid our boys, the best smoke and mirrors way to hold and sell shares as a director I've seen but still a rose by any other name. Hold shares in unit trust with other beneficiaries. In-Specie ditribution to "unrelated beneficiaries" who of-course sell straight in to the market and "reimberse" the unit trust appropriately (no such thing as a free lunch). Basically our directors sold but in such a mnner that it isn't obvious and can be dismissed with only suspiscion surrounding the transaction.

Anyway, moving on the the real news how about that half year statement! I knew the numbers wouldn't be great but the $7M loss was a blowout, based on an absurd $7M admin costs (including well over $1M directors fees alone) in only six months. "Trotters in the trough" while production, plans and profitability fly out the window.

How about the new heap leach project being ditched 1 month after the merger! It was the shining light of short term production and profitability while new CIL plants were built but now it's a terrible idea. While production will be lower they "still expect cash flow and EBITDA to be similar to the merger production forecast." Do they think we are STUPID. How can you remove one third of your production projects and keep same cash flow/profitability, especially when one plant is demonstrably struggling to breakeven on cash costs without the yoke of any fixed admin costs.

All the while Mogul was struggling they said they still expected to meet annual production and profitability forecasts. It was very doubtful then but quite absurd now. No extra production until 2009 (tell me this new CIL plant wont be delayed atleast 2 months over next 2 years) may well mean back to the market for more money..... here we go again.

For 2 months they sat on this very price sensitive information ("Impala" held mid-Jan) with only the insiders taking advantage of unloading into a rising gold price. I still like the project concept but struggling to see where management have delivered on anything except lining there own pockets handsomely, while consistently guilding the lilly.

Because we all found out after the insiders have sold down (notice NO BUYERS on the screen by the time announcement came out after market) we are probably cray-potted now. I would think the big insto's that bought into this last $50M raising on a false story might be pretty pizzed-off, especially JP Morgans who was conned into buying recently.

No-doubt these will represent value at some time in the future, but at what price and when? No-one will buy these until consistent production and profitability can be demonstarted from Mogul as the next plant is more of the same but 2 years away.

The company must:
1. continuosly meet production forecasts
2. relocate CIL plants from existing cash flow within projected timelines
3. Stop the admin bleeding now "fun & games" are over, stay tight on costs.
4. Replace Frost & Revlin with mining project credentialled directors to steer the ship and remove SPIV factor (I have gargled Listerine 3 times this morning but the bad taste is still there). They brought together a good deal but please now leave, sell your shares and concentrate on your court cases.
5. Do NOTHING else but above and let the market take it's course in a rising gold price.

Am dark as Kamal..... good luck.