email response, page-25

"aren't we supposedly the kings of low grade?"

F&B "supposedly" is the operative word.

producing @ $1200 doesn't secure us that title.

we need:

1) Scale (more money)to make the low grade work
2) better grades (more money through exploration)
3) 1+2 at the lowest price possible

also just think about it

if the deal goes through we will have a new market cap of $300m, $225m in the bank.

skeptics will say yeah money in the bank for about a month.

I always give everyone the benefit out the doubt.

I have no reason to distrust SD. I can only assume they are in this as an investment. Relativity small when looking at other assets China is buying.

Does anyone think this is the last asset China will be involved in?? obvious answer is no.

so why on earth would they get themselves a reputation for acquiring 51% of a company and screwing everyone over.

what will it do to their reputation when negotiating Billion dollar deals. There will soon be a stack of examples that shareholders can refer to to keep China out of our market. They wouldn't want that.

Please don't mistake my view as being naive. I fully understand the risks in loosing control, but look at any of out top 20 companies, how many of those are foreign owned, does the share prices of those companies appreciate with improved market conditions ?

Does anyone not invest in RIO or BHP because they cant buy a stake that will allow then to influence the direction of the company (if they had billions perhaps).

I will be happy if the deal goes through, we get 3MH upgraded, get a new\refurbished mill in Laverton (this will bring cash costs down), explore with 40 million
secure ongoing cash flow and keep the rest aside and re-evaluate once we get some decent results back from the 40 million we just put in the ground.