ann out, page-32

My views are somewhat contrary to a number of the views above.

A number of things I would say to look at - especially when compared to other spec. stocks in the marketplace.

1) they are a producer of gold - ie they have revenues - albeit the last quarter was not that hot
2) they are cash positive on an annualised basis
3) they are profitable - look at the cash statements - $10MM of revs and $1.15 MM of net cash - which we should expect will be reflected in annual report, which will when released will draw more attention.
4) Directors remuneration implied not to be that high - 06 accounts - show very limited drawings - and with annual admin expenses $350k last year - implies little if any increase in directors' remuneration - so where will they generate their value - from the same as long -term holders - share vlaue.

With underlying positive cashflow and profitability the fundamentals of the business are heading in the right direction. To a degree the last quarter smells a little of balance sheet maniputalion and some form of agenda - maybe their expectation the gold price is going to rise - looking at the age of the directors - they are experienced.....

On balance for a short-term trade - its a poor announcement ...for longer term holders I see this as a solid underlying performanace with the management getting the fundamentals of the business right and not unecessarily converting ore to finished gold - for what purpose.....when the cash generatability of the buisness is there...and the development and exploration is essentially self-funding....

By comparison to a hell of a lot of other spec stocks out there this is still a little hidden gem - compare this to other specs that are all about blue sky and not based on actual production and profitability.

For longtermers this will pay off IMO for traders - well go find someting else to play with - and I include myself in that capacity - I have some long-term but also trade the short-term volatility.

Just my thoughts - happy to have healthy dialgoue but for me this is a longer term hold.

DYOR