sentiment, page-2

LB,

Fair call.

On the issue of the SPP - this is a PR exercise to placate small shareholders. They can take or leave that money.

I think going it alone on Kanmantoo suggests two things:

- ESG TOP-UP

HGO are firmly of the opinion that they are going to get a significant ESG top-up. Why else would they spend $100m on an asset that, in their own words, is their second priority? A$100m (albeit partially financed), is a large percentage of their A$130m pre-tax cash. TOO large a %

- IMO - KANMANTOO WILL BE SOLD, AT SOME STAGE IN THE FUTURE.

David Archer, if history is any guide, is someone who seems to know that the biggest gains are in identifying and developing an asset. He also realises that high metals prices do not last forever. We have mentioned Savage. ESG is another. He also seems to know 'when to hold 'em and when to fold 'em' . Now a sale of K may well come a few years down the track after K is in production. But it is a hell of a lot more saleable as a 100% owned asset than as a 51% owned JV.

Now I could be wrong. Maybe HGO will operate K until the end of its days... but I doubt it.


On risk/reward, HGO has an EV of around $70m at the moment. That is tiny in relation to even their known assets. Add in the upside from ESG and Indonesia...

I do not criticise anyone for taking profits early. That may well be a very prudent thing to do. And I of all people am not one to hold a stock forever - I also like to make my gains and then sell once the value gap has closed.

But I am sticking with all of my shares. The value gap is far from closed.

Y

(And if someone who is acquainted with David Archer - (I don't know him at all, so can only judge by his actions) - wants to offer another perspective, that is most welcome.)