material capital raising again???, page-36

Honey85, as you are aware all Moderators are allowed to post. This includes posting on stocks they hold and do not hold, as is also the case for every other poster.

My comments have been backed up by information, by facts. I am also entitled to reply to posters who have disagreed with me, just as anyone else is so entitled.

As a former shareholder in RAU, I have closely followed RAU for a number of years. It concerns me when there are consistently bullish posts made while the share price during that period of time loses 95% of its value.

Honey85, elsewhere you wrote:

"Don't tell me that you don't have a bad performing stock in your portfolio and you are hoping that it will turnaround."

My reply to that:

I currently have no losing stocks in my portfolio.

One of the reasons is I get out of stocks where things start going wrong, or I anticipate things are not as they should be. If not I would still be holding RAU today - all the way down from 29 cents, or TMR which went off the board or a host of other specs where things did not work out.

I also let the winners run.

This is the direct opposite of many investors imo who sell their winners too early and hold on to their losers hoping to break even.

The positive news from today is it looks like RAU will raise $6 million through the issue of 600 million shares at one cent, though this looks like a significant dilution for current shareholders.

I have been working on some figures on what might be involved for RAU and of course its shareholders in order for RAU to raise the US$136 million needed for mine development mentioned in today's ASX "Investor Presentation."

I suspect at the appropriate time it could be a combination of further equity and debt finance. I hope RAU do not sell out to a joint venture partner. I also do not believe now is the approriate time to try and raise US$136 million.

Barring any nasty tax measures in Bolivia, via some massive Super Tax which might peg the gold price at US$1500 or whatever, and I wouldn't entirely rule that out, despite anything negative I have posted, I do believe that if the gold price soars as I expect it to do, then RAU's gold project will probably at some point in time look like a no brainer and then be well received by the market.

Based on past history the issue is whether RAU Management will be able to maximise for current shareholders the potential rewards from this project seen at that point in time.

I actually believe RAU Management, to minimise further shareholder dilution, and potentially substantial dilution at that, should progress slowly with this project and wait till gold fever makes the RAU share price run strongly on the merits of the project alone before accelerating development plans, when the company as a result of gold fever could well have a much higher share price.

Hope this lets you understand where I am coming from Honey85.

Cheers,
SP.