Ann: Operational Update, page-96

"but you know what they say about catching falling knives."

.......Fundamentals overwhelm here and I have been doing this long enough to have confidence in research.

They had at the end of March - $28m cash, $5m unsold bullion and $50m worth of stockpiled gold bearing ore verse the market cap of $50m

I believe disallowed announcement of a reduction in mining fleet of  40% will actually happen. Am of the view this mining fleet reduction will result in a cost saving of $20m annually, without a major reduction in the overall gold grade ore mined. (at least for 18 to 24 months) . The saving of $20m kicks straight to bottom line profit (no tax with their loses).

So even without mining plant efficiencies and increased gold processing - the cost savings alone, of my estimate $20m PA makes the cap far, far to low. They will do much better than $20m - that is very likely, in my view.

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Just some tax loss selling currently in the stock.

NOTE the Tax Office rules though...

Avoiding wash sales

In 2008, the Australian Tax Office (ATO) issued issued tax ruling TR 2008/1, which specifically outlaws arrangements where “…in substance there is no significant change in the taxpayer’s economic exposure to, or interest in, the asset, or where that exposure or interest may be reinstated by the taxpayer”.
In other words, the ATO prevents investors from selling a stock in one financial year to take advantage of a capital loss event, only to buy that stock again in the new financial year. This is known as a “wash sale” and the ATO will disallow the loss if the sole intention of the sale was to minimise tax. As .......... Executive Director Andrew Bird said, “if you are going to sell, make sure you really mean it. If you still believe in that stock then choose a different ‘loser’ to sell to offset your gain.”