Ann: A$11m Capital Raising to Accelerate Mining at Hill End, page-14

Been watching the quarterlies and presentations on this one for the past 12-18 months. Im officially in now, starting to nibble at these prices, now that I know production is imminent and that they have secured the capital to finance the ramp up. its good that its too small and too illiquid (low vol ~$100k/day) as a microcap for fund managers and larger investors, as it gives us small players a chance to get in before they can.

Im glad they did a private 11-12m raise/convertible note rather than going to market and discounting further. It looks like they have secured funding from long term major shareholders so the new shares wont be sold into the market which will keep the sell side tight.

it should form a bottom now and start to build upwards momemntum within the next 3 months, regardless of the gold price, as the positive news flows.

Im also glad to see that the raise was large enough to finance the next 6-12 months to get through comfortably until the gold revenue starts coming in from the existing stopes, and that they will be simultaneously drilling the veins to better define and expand the resource, which will drive re-rating of the valuation.

i think this project has been substantially de-risked now to the point where the upside substantially outweighs the risk, as a small, low-cost, high-grade mine low down the cost curve, fully funded for near term production and soon to be cashflow positive, possibly even generating a small dividend within 12-18 months. the management team seems focused on cost discipline, even buying 2nd hand equipment and refurbishing it to minimise capital costs. i see lots of catalysts for a re-rate over the next 12 months.

But i will be planning, as usual, for a long term hold over the next 5 years aiming for major compounding as the project consolidates poriftability and expands the current mine and additional projects for which they hold tenements; this is not a 12-month speccy, its a long term hold for me.

good luck and well done to those who have got themselves in and set earlier than me.