Ann: Board and Management Changes, page-67

I often see on HC that posters want the relatively small company that they are invested in to develop the project. I see it regularly with gold and base metal co's where impatient investors agitate and post that they want the mine developed rather than drilling, drilling, drilling to increase the resource base etc.

These posters seem to think that mine development is the holy grail and that everything will go splendidly with the development and there is minimal development risk, big profits and divi's to follow etc.

IMO this thinking is misguided, and I have virtually the opposite view. Over the years I've lost my capital numerous times with failed developments. Development is absolutely fraught with risk. Projects rarely go as planned with huge cost overruns, production below plan etc. I could name many examples, 2 recent ones in the oil and gas space are COE and Vintage/Metgasco with both developers having production issues and weaker share prices.

IMO development is best left to the big guys with deep pockets - they have the balance sheets to handle the inevitable development teething issues.

So for me I'm happy to sell into a takeover, make a good profit and move onto the next promising explorer who is building an attractive resource (and who will hopefully also get taken over in due course).

GLTA & DYOR