the real question, page-3

I agree with SP.

My reading of that is, "Well, we've used shareholders' equity to get to where we are. In order to take things to the next level, we are looking at debt. Our internal estimates are that this debt would allow us to expand production to a rate which would enable complete repayment within 5 years."

The key, for mine, is pages 8 & 9. They seem to be saying that 50,000oz p.a. is fully funded. However, if you want to accelerate that to 250,000oz p.a., then it's going to take a while via internally generated cashflow. With some debt funding, however, it can happen substantially faster (with an estimated repayment period of 5 years).

The most amazing thing for me about this company is the sheer amount of equipment and infrastructure these guys have built up, with zero debt! (Oh, did I mention 10oz of inferred resources?)

They have options (not desperate necessity) to go with the ramp up, or let it go.

That's what I like about this company - they have all of their ducks in a row. No, let's just suck it and see, for these guys. It all smacks of professionalism and leaving nothing to chance.

That's the reason why I've taken a significant stake here.