Ann: Appendix 3B , page-16

GoldenK

I think judging by the reduced volume of posts on this tread, the impatient have already moved on presumably to another gold stock with a more appealing chart?

I also agree there is a level of soverign risk that needs to be factored into this stock.

Nkwe Platinum is the latest in a series of concerning decisions around prospecting licenses in SA.

Highgrade ran a story about two others in August namely Kumba Iron Ore and Lonmin.

Kumba was denied ownership of prospecting rights left unclaimed after the companies offtake partner failed to renew. Kumba had been mining in the area for over 50 years. Instead the rights were given to Imperial Crown Trading a security and weapons company with strong ties to the ANC.

Lonmin was told to stop mining unavoidable non PGM material from its SA operations, after having done so for over 30 years. On applying for the rights they found out that a licence had already been granted to another company lead by people again tied to the SA government.

So the conclusion is that security of tenure is being eroded in the current political environment in SA.

I would also add these soverign risks to need to be considered in context with other risks associated with owning GDO. Namely variances in production forecasts and the cost structure of Modder East. Not that I am saying it is any different than any ramp up, but I would of liked some more clarification on the projected CAPEX per ounce for the next financial year of $350 per ounce when the LOM CAPEX is still stated as 100 USD per ounce.

Still significant margin in the operation but such a variance requires much more detailed explanation IMO. I understand the opening of more panels would create a spike in Development costs but are a little concerned that the LOM target will prove overly optimistic.

Still significant margin in the operation with total costs around $750 USD per ounce.