quietly building a sizable stake, page-8

I think Merlin is slowly taking shape. From the announcements it appears that they have engaged some external consultants to work out how to maximise the return from the deposit and how to sell the production.

Strategically they stopped the project at the right point or a bit late, after the declines were put in place. A very expensive exercise.

Anyway I think the board and Innes have the right attitude, get the cash flows going from existing mines, extend the mine life through easy to extract shallow deposits nearby and get Merlin up to a point where a strategic partner will come in and sign an offtake for the product.

Anyway, for me, this stock has great upside as the cashflows have started and the development is in line with the cashflows. This equates to minimnised downside risk and lots of upside in the developments and drilling.

The comments on Yeti looked very positive to me. Although they can't say much until drilling is undertaken next year.

The cost to build the production facilities and camp would equate to more than the current market capitalisation. Go figure.

I just hope someone doesn't try to take it over on the cheap.