awfully quiet, page-9

Malay,

Mate if you check out the announcement dates and the SP decline, you will see that the results of assays being released are the catalyst and coincide with each other. Couple that with Gold sentiment and you have that decline.

BGS should have no troubles monetising the asset either through JV or directly selling Ntoila I believe. That’s my view and am confident to back it all the way to what I believe is fair value which im setting at about 30m MC (based on selling the deposit as it’s a clear asset). Lets think about it logically, we have a deposit that is relatively defined, with possible further upside potential, its right at surface so it needs no prestrip, metallurgy results are excellent, they support low cost, we have moderate grades, even up to 4gpt, we have defined a route to the mill, we are talking to the mill operator and have a good relationship with him… hrrrrrmnmmmm… its basically ready to go… and BGS have got it to that state. Why wouldn’t Randgold want 100%??? I can certainly support that MORE than the JV, hence my assumption on MC.

Personally I believe there is at least 300,000 oz at 2gpt. 30m MC / 300,000 oz = $100 profit per oz. That’s very reasonable and conservative I believe, knowing that Randgold could easily exploit that deposit at quite possibly 1,000 profit per oz…. 1000% return on your money makes sense for a company that is trying to realise maximum potential from a depreciating asset (the mill).

I don’t mind people coming in and bagging this stock, that’s fine It helps my position on accumulating at below the 30m MC level. Now if we find another satellite deposit similar to Ntoila, its rinse and repeat for me, but I think the JV would result instead if we found another. That would bode even better for the SP as we would no longer be a junior explorer sourcing cash, but a medium size producer generating cash.

Each to their own I guess.