Ann: Change of Director's Interest Notice , page-20

Legume/elze

I agree with your points.

In relation to TGZ, I worry about the size of the mill they have there because the grade is pretty low. I am not sure if the drill program has yet found anything substantial (I used to hold TGZ when they were MDL). They grade was a bit low so they needed a bigger mill. Other issues were borrowings and hedge.

CGX is planning to get mill capacity of 10mtpa one day which will mean annual production of around 300k ounces pa, by which time they should be unhedged and bringing in a heap of money. The share price, even with a 30% tax should be $4.00-5.00 so there is plenty of upside for the patient.

I prefer PRU to CGX, it will grow faster and possibly has better management, Their ore grade is higher in Ghana and a lot higher in the Ivory Coast. Downside is the proposal to change the tax regime in Ghana, but the current price may reflect this.

The idea is to spread the investments around. Who knows where the next people's revolution will be next and which asset the locals will decide to liberate from foreign control?

loki