Guys, guys, a little calm here.Corporately:1. Do you think DH...

Guys, guys, a little calm here.
Corporately:
1. Do you think DH and the board took this lightly? – This is a very tight ship. These guys have never feathered their own nests and the few times they have raised money they have made it go a long long way. They are not looking at the day trade they are looking at growth and likely have a master plan.


2. In what remains a fairly ordinary equity market they have attracted a quality player with a long-term outlook.


3. Look at some of PacRoad’s other investments… you will generally see Instos following like in Base Resources… and they do it on market.



4. Debt in general kills companies. Have a look at Tanami, Red 5, Forge, Kagara, Silver Lake…… and it was the ANZ that had no qualms foreclosing Forge and Kagara and selling the assets to pay themselves back leaving shareholders scratching. DEBT = NO THANK YOU.


5. Strong balance sheets build businesses…. DRM, NST both raised money this year. See below on NST. And in DRM… they raised after a quarter of production when shareholders expecting dividends… what did the market do… they loved IT!


Technically:
1. We get to see drill rigs turning for the first time in 18 months. Nothing excites the market more than a drill rig.


2. Old Pirate south had phenomenal grades in trial mining… and now they have seen geology they can target a rig on that.

3. Join Old Pirate Central to Old Pirate South…

4. Western Limb


Overall….. look at this right now (even with the dilution) with the top two points now fixed.
1. Strong balance sheet and fully funded.

2. Debt free.

3. Excellent register (PacRoad the best).

4. No need to do due-diligence or worry about the system… PacRoad did that for us.

5. Highest grade open pit in Australia.

6. Low-capex.

7. Drill rigs turning that can’t miss (high-grade surface zones at ABM has always = discovery)… I can’t wait to see Golden Hind and the two new and UNDRILLED Bermuda zones.

8. Pipeline of projects – Buccaneer... and some top regional exploration. This is the final frontier. Gold sticks out of the ground.

9. Excellent Technical team

10. Attracted the likes of Independence Group for the real blue sky at Lake Mackay… imagine next Tropicana with us holding the 30% carry like IGO did.


Look at it for what it is.

Bear in mind NST only made $7M profit last half year and then have now bought some old mines which gives them $600M mark cap. They raised big money and diluted to buy big. NST have worked out what they can be the best in world at… buying tired / past the peak assets and giving them a good squeeze. DH has worked out what he can be best at…. Finding high grade and new systems. 3.4Moz in 4 years from a standing start in 2010 to now. That’s 850Koz every year. Or if you just want to look at the high-grade parts of Buccaneer 2.2g/t and OP at 10g/t… then 400Koz every year or $20 bucks per ounce.
Give ABU a $5M to $10M budget around OP on extensions and see if they can’t add 250Koz to 500Koz this year. And that will be the high-grade probably pushing OP beyond 1Moz in the near surface. No need to be disappointed that they aren’t building the mine tomorrow. Be GLAD. The gold has been in the ground for a long time and aint going away… lets let this team work its magic. There is method without a shadow of a doubt.