tradedemon is unfortunately right.Lots of fluff at the start...

tradedemon is unfortunately right.

Lots of fluff at the start saying what has been achieved but base case NPV is negative. I thought it was spin stating the MOU was terminated, this looks to be the real reason as I had speculated, partner saw the figures, did not want to kick in for the next phase and were happy to walk away and let it lapse. This rang immediate alarm bells for me, hence my exit.

So they start playing with the assumptions presented in the base case for the MOU. What do they need to make it work? Increase resource, increase grade, throughput (requiring extra capex) and reduce strip ratio. So the upside case becomes next years new necessary base case.

Well they need to find the resource and the grade and the strip ratio to make it work, so back to the drilling program next year and plenty of cap raising in the interim.

Will keep an eye on it in case they drill something worthwhile at a higher grade and commercial strip and I think they have the right technical and admin team in the country but I wouldn't be buying any shares based on this report alone. Given the thin trading glad to be out.