Dissecting Dalgaranga & Future of the Group

Following a suggestion from one of our previous Meetups, I am proposing to run through my analysis of Gascoyne Resources Dalgaranga fiasco that saw the company go into Administration. The question that was posed to me was, "Were there any signs that an investor should have heeded that warned of potential collapse?"

I would also like to discuss the future of the group, and if it has a future, exactly what its direction and focus will be.

There are two issues here. Firstly, between the Meetup membership as an organiser and Riff/Spacecubed membership for the use of their meeting venues, it is costing me around $650 per annum to keep the group running in its current format, and that is without taking a hit on the pizzas, which I have done for just about every meeting that we have had. So if the group is to continue I would like to discuss doing so with some sort of fee to recover my costs. I am of course open to other options such as sponsorship, but I am not willing to continue to fund the group.

The second issue is one of direction. We have bounced around looking at individual companies, hypothetical companies/projects, various aspects of the mining life cycle, and the fundamentals of financial modeling. However, no clear goal for the group has emerged.

In observing what other investors do, many of whom have no technical mining background, it seems to me that building up one's own database for a sector, such as the Australian gold producers or Australian gold explorers, and then using that analysis to identify companies that may be undervalued or overvalued maybe a better targeting approach to identify opportunities.

Anyway, I put these matters forward to prompt you to think about if you would like the group to continue, and if so, in what format and under what terms.

I am not proposing to provide pizza for this event, but please feel free to bring something to eat with you. I shall be at Riff at 5:30 PM on the day.

I look forward to seeing you there.

Regards

Neville