1.1 or 1.2 close, page-3

Without reading the mind or Mr. 525 - it's simple psychology (AKA chart reading).

When the masses arrive, they won't won't to pay much more than the last closing price, so it we closed at 1.1c, they are more satisfied paying 1.2c.


I'm not too concerned by the daily closing price (though bigger is better) because from the look of the last 2 days, we are in for a slow burn. So long as the weekly close creeps higher, I say let it ride.

To put it into perspective, if you got in at .09c, then .01c per week is a handy 11%. Take that every week of the year.

Conrad is what will really kick this off now....otherwise I'm seeing a slow burn until we see some production and cost figures. Don't forget, we only get half the net figure, not half the gross figure.

If the cost to produce and the recovery figures prove optimistic the MAR revenue gets shredded.......having said that we are still undervalued.

Make the following assumptions (bad case scenario):

- Output is 15,000 per year
- Recovery cost is $1,100 per ounce
- AUD gold price drops to $1450
- MAR burns $1m a year in running costs

That gives us revenue of $2.6m per year, profit of only $1.6m (I assume there are enough credits to cover this??).

I think that is why we haven't seen any real jump is SP - while we are de-risked we are unproven. If you take the more optimistic (perhaps realistic) figures the revenue share goes right up to the $7-8m range.

Happy to be corrected on anything, but right now, without any other announcements I see us creeping up to 1.5 - 1.8c until some real numbers come through.