Ann: Change in substantial holding , page-19

It has been dissappointing for investors in gold stocks over the past year that
shareprices have not tracked the POG. IGR is a classic example.

I have had to review my gold mining investments and adjusted according
to the following inquisition:-

(a) What is the quarterly cash increase (if any) in bank?
(b) Is miner paying dividend (or likely to)
(c) Is mine life 10 yrs plus? ( P/Es are usually low because of low mine life)
(d) Is there hedging in place?
(e) What is grade? ( no future in low grades if POG drops)
(f) Mine location re future costs and risks.
(h) What is debt and outstanding options?

If the miner is making money rather than spending it, then it will accrue
cash in the bank and redistribute some of it in dividends.

If the mine life is adequate, then there is less chance of excessive exploration
costs.

If grade is good, then the mine will likely weather a drop in POG.

As an ongoing business, a goldminer has to include exploration and development costs into the cost of production so that a reasonable future
for the business is maintained. It seems futile to declare profit and then
use all that profit in excessive exploration and development costs so there's nothing left for the investor.

With very best regards
Moorookamick