still 6.3 million in bank, page-10

There is already approx 2.970bn shares on issue fully diluted as all options are either at, or deep in the money.

IMO they should bite the bullet now and consolidate the shares before the next CR, otherwise it will look like quite an embarassingly high number of shares on issue.

SDL, for example, has raised $100mm in the last 3 years, not an insignificant amount.

Shares issued 5 May 2009 134,516,250 $10,761,300 (8 cents)
Shares issued 7 May 2009 62,500,000 $5,000,000 (8 cents)
Shares issued 19 November 2009 315,511,294 $47,326,685 (15 c)
Shares issued 22 December 2009 248,891,386 $37,333,699

When SDL did its CR's in May 09, its MC was sub $200m.
When SDL did its CR's in Dec 09, its MC was approx $420m-ish.

LEG MC is approx $178m on a fully diluted bases (2970m * 0.06)

Bearing in mind that SDL MC of $420m was when it had a JORC resource of 215Mt of DSL and 2400Mt of itabirite. LEG has potential and is valued at approx $178m on a fully diluted bases (2970m * 0.06).

Just say LEG needed to do similar CR's for $100m @ 0.06 cents, that would be another 1.666bn shares on issue, bringing it to a grand tally of 4.63bn shares on issue.

Directors should consolidate sooner rather than later for all current shareholders sake, to save unncessary negative comment from the financial markets on the number of shares on issue when things start to get a little bit more serious for LEG. Otherwise this will be a sucker for the day traders.

Based on the comments from LEG announcements, the type of ore is different to SDL, so I would expect up front capital costs might be greater than if it were a DSO hematite proposition. (Although I do concede that there is itabirite underlying the top structures.) But that will be understood further with drilling.

Do not underestimate the additional CR's to come on this baby, to get it to a similar state to SDL.

My opinions on LEG -

This one is not a bottom drawer kinda stock at this stage,
It is a trading stock, preserve capital is the key on this one.
It is valued based on nearology and a couple of nicely coloured aeromag pictures, which, balance of probabilities look like they might have "chapeau de fer", but time will ultimately tell how much there is...
Prospect of IO oversupply in the next 5 years or so.
It will need a partner to get it up to production.
It is years behind other movers in the area,
rar,rar,rar.

At this stage I do not own, but have in the past, but on no news this will drift. There was no reason for the recent jump to high 6's, but here we are again at 0.059, so we shall see where it goes from here.

HB