Ann: Change in CDIs on Issue , page-10

elze

Thanks for your comments.

Well done getting out of TGZ ahead of this fall.

I am expecting TGZ to have more success in finding gold, but even if they do not then they still have a fair amount at the lower grade which should enable them to operate at around 140k ounces per year (at a higher cost I suppose).

I have now listened to the recent webcasts and there is some obvious concerns about how TGZ will be taxed in the future. Given that they face a 25% tax rate versus 35% in Ghana there is some scope for adjustment without destroying the economics of their operations.

I doubt there will be another gold mine in Senegal in the next 3-4 years so the government needs to treat them with some care. In fact there is a good chance TGZ will be the only mine in the next 10 years! TGZ will be able to pick off the orphan explorers at will over time, and there is nothing they can do about it.

It looks as if I may have got in too early. Nobody wants to buy and I suppose the seller has to get out, so this could go under $1.00, I suppose.

Here is an interesting post on the SLR thread about what the costs of other producers (MML, SLR etc) are according to one bank analyst.

http://hotcopper.com.au/post_single.asp?fid=1&tid=1965746&msgid=11508172

loki