Ann: Capital Raising, page-44

I understand your frustration Kroll, but I also understand the politics behind the MTJV as LK has alluded to. I understand also the relationship with FMR. FMR hold a decent stake in GSR too for gold as well as their interim toll treatment arrangement. As Kissinger once said, there is no relationship only best interest in deals i.e. a Pareto optimum. I think there are a few stakeholders with different agendas who want the assets. Sometimes it is what it is and strategically one could be worse off with delays because bigger players obviously carry more clout and persuasion and can exert market power as they do within the scope of the law and just do nothing to gobble up the weaker outfits. Leverage is often decided by politics and vested interest. Its a tough game as we all know.

However, in the here and now, and that rises above the moves being made and in the future, productive capacity will offset any dilution. Loans also have to be repaid with rising rates and in this climate foreclosure can be exercised at anytime whether in profit or not. It is new holders that will generate a future rise in price as evidenced by the numbers of shares traded who have bought in knowing there was a raise and probably thinking this de-risks GSR. GSR has also been marketed as a company with no debt which appeals to retail in this climate. There is also a little aversion with regards the stability of banks at the moment and private capital is looking to park money into fixed assets. Now I here there is a call to review the role of the Reserve Bank? In whose interest?

I can also remember you singing the praises of the management of GSR not so long ago. I think they made a good decision because the value of my stock has increased markedly and will continue to do so in the future unless I perceive otherwise. I anticipate price will pullback a tad as it does after a lift while we await drilling results from MTJV but on the other hand extension drilling and exploratory drilling at Burbanks and other tenements will be ongoing and the incremental price will keep rising with the gold pours. Short term traders may sell on the news in this climate. More in it for the longs as time goes by now GSR is full steam ahead IMHO.