Ann: Appendix 4E and Annual Financial Accounts , page-17

re: Ann: Appendix 4E and Annual Financial Acc... Ho AverageJoe,
Ill answer this one for you. If you have a look at page 47 under the heading financial position the impairment caused them to have almost 47 million worth of liabilities more than assets. That's how the figure was arrived at for the capital raising. The reason why they didn't wait till the price rose above 85 cents is they were technically trading insolvent and I believe the corporations act required them to take immediate action to put them in a position of solvency which they have done.

For all those that whinged about the price of the raising its fair enough but imagine if the financials came in and they were forced to raise at 55-60 cents.

Thing is most of the impairments will probably be reversed this financial year if gold stays at the same price it is now Aussie dollar wise.

The worst is behind SLR. Now they are debt free and can start building up cash reserves which will help if gold corrects again. Provided they focus on internal growth from here on IMO.

I actually think its undervalued under $1.