accumulation, page-8

re: what's valhalla worth - to probing-yellowcake i have previously presented my thoughts on how the company would issue the float. my scenario, would have treated everyone (shareholders)fairly - on a pro rata basis, have raised the necessary funds, obtained shareholder spread , and rsg would retained about 75% of the new company. if the shares in the new company, were to be issued, in any other way, apart from a pro- rata issue, then in all fairness, the large shareholders would be severly disadvantaged, and could explain why, there is a large seller, trying to get out. any thoughts that he is "accumulating" is a joke - as there is simply no advantage. i previously had a look at the shareholder spread, and a 1 for 5 issue, is simply not on the cards - for no other reason, that the company would not get the required spread of shareholders, having a minimum of $2000 worth of shares - or 10,000 shares at 20c each. (stock exchange listing requirements - but correct me if i am wrong) for this to happen on a 1 for 5 basis, the company would have to have a minimum of 400 shareholders, who hold 50,000 shares - given the shareholder spread - this is most unlikely - as there are probably less than 600 shareholders, who own 10,000 shares or more (old figures - from one year ago - but not likely to be much different). no company wants to be lsited with the minimum number (ie 400) of shareholders, that own a marketable parcel - as that creates all sorts of problems - no, rsg will no doubt go for 1000 shareholders, that own a minimum parcel (ie - $2000 worth of shares).

one year ago, there were 4000 shareholders. of course, everyone would like to have 10,000 shares in the new company - or for that matter $2000 worth - which would raise the $8m. i do not think that the large shareholders would be happy with that scenario. imagine holding 1m shares in rsg, and getting a paltry 10,000 shares in the new company

i still find it unbelievable that a company can have a cash operating cost that is higher than $700 per oz - simply SHOCKING