A suggestion to the Board and Management, page-2

For some perspective, the 52 week high was $4.04 and the low today was $1.76.

This is a 56% fall in the share price.

As frustrating as the situation is with McPs is, the good news is the company is not spending much money on it.

But what can the company do to restore faith?

A buy back
As suggested by another poster recently, would be hated by those in this company for the dividends as the buy back would be at the expense of those dividends. The company is a lot cheaper than it was when it acquired Tropicana, I wouldn't be against it and it would put a floor under the price. The declines in share price are exacerbated by people leaving because of the declines in the share price. Do a buy back, heck even at $1.90 or $2 floor.

Even if the company was to spend $50m on a buy back now, and then need to raise to build McPs, the raise would likely be at a higher price because McPs would have been approved and the market would understand the parameters around that operation (costs, timelines, etc).

I think of it like a term deposit, but with our own shares.

An acquisition
Would be interesting, but it would need to be in a tier 1 jurisdiction because anywhere else would likely be seen as risky by the market. There was a suggestion by another poster for the company to acquire a larger holding in the Duketon belt, which is the logical choice given the large footprint and significant infrastructure the company has in the region.

A merger
Would also be interesting, but with whom? A merger of peers? What are the synergies?

Personally I would like some geographic diversification if that was to happen.

Increase Resources and Reserves
This is actually the best and cheapest way to make the market happy and can help the company put a floor under the share price.

I also think the "Biannual Exploration Update For Duketon and Tropicana" really should have been accompanied with a JORC compliant resource upgrade for Duketon, as Tropicana upgrades aren't up to us.

Of course that will take time and drilling and money, but adding low cost ounces close to exisiting infrastructure is entirely within management's control right now.

It doesn't need to be an exhaustive drilling campaign, but give us another 2m - 3m ounces at Duketon in the near term, and whilst it won't fix things for ever, it will represent another 4 - 8 years mine life.


What a miserable day. And company. And market.



One goodish thing is the POG is / was up about 0.75% or about $14. But is falling again.

What a miserable gold price.