so lets cover a few facts, and dispell a bit of the rubbish getting trotted out at the moment:
1. the fundamentals of the company have not changed, if there were any reason to believe so the company would issue a statement as such. this includes cost of production, recovery, resources, cash on hand, and anything related to the nature and management of the assets. nothing has been issued by the company.
2. statements were made at the agm, and statements were also not made. the agm is not some secret club where you will get all the inside privileged goss from management; anything price sensitive must be issued via an rns. this includes news pertaining to production and drilling. note, this applies to both the upside and the downside.
3. the only input that has changed is the POG, which is currently at $2160. company guidance for production is officially $870 per ounce - nothing has changed here, see above.
4. we are now producing gold, and guidance is we are cash positive this financial year. nothing has changed, see above.
5. if you go back to the point where the shareprice was $0.048 post the credit raise, the share price has been consistently under accumulation. you can see this happening where trades dry up at a price point and a very small trade is pushed out to drop the price a pip. nearly every single pip dropped over the last 6 weeks or so has occurred in this manner. accumulation is a positive, but dont get sucked in and let them accumulate YOUR shares, make them pay for them.
6. the company is not leaking news. this is rubbish trotted out by bears to put fear into weak holders. why do we allow a share price to move up, free of any conspiracy, but when it goes down it must be leaking news? it isnt. it is just praying on human instinct of fear.
7. the current RESOURCES are valued as such:
Lost dog: 130,000 oz
Panther: 10,000 oz
Black Cat: 22,000 oz
asic $870
pog $2150
162,000 * (2150-870) = $207m gross profit LOM
8. cash on hand is circa $10m, estimated outflows this quarter are $6m. at full production using the inputs from point 7 above, the company stands to make $9.6m profit per quarter. there is no reason to believe a credit raise is required any time soon.
9. fair value of the company is between $0.04 and $0.05 based on what we KNOW today. this is applying zero discount for further derisking of the assets, or further acquisitions which was the stated reason for the credit raise.
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