Cool , well here goes....lol... Must say as a newby share market...

Cool , well here goes....lol...

Must say as a newby share market investor and a brand new “value” motivated CDV investor with a 5 year plan in mind I have come away with a rose coloured glasses point of view after attending todays CDV AGM in Perth.

Not sure my unsophisticated points of view are worth much but I thought I would put them forward here as my attempt to contribute to HC which I enjoy visiting.

So quick disclaimer regarding my position. After reading the nervous posts here on HC about the FS for CDV I was a bit worried about having jumped in at $0.40 on the opening of trading after the release of the FS. Newby mistake I suppose. If I had waited I could have bought in several cents cheaper. Live and learn.

But I relaxed after reading 2ic’s sophisticated calm analysis and carried his/her points of view into the meeting.
Living in lovely Perth it looks like I get the chance to attend many gold miners meetings.

Some issues bought up here on HC were addressed at the meeting and I came away much more pleased with my small investment. So for what they’re worth here are some of my takeaway points from attending.

First a bit of a cheeky point. I had a chance to chat with Arche and he was friendly, approachable and very supportive of we small investor types. But, here’s the cheeky point, he does look like he has been in a good paddock..lol. Could not imagine him in hobnail boots in the pit when it gets going. But looks can be deceiving…lol…Sorry Arch

The concerns raised on HC about the AISC differential between the PFS and FS were neatly explained as the difference between the strip ration of a 4.7 million sized pit and the new 5.1 million sized pit that was utilised in their attempt to extract as much as they can from the 7 million ounce resource. Along with the mining infrastructure contractors new assessment/quote on the bigger pit there was an updated or new cost/quote increase on the setting up and supply of the electricity supply. I did not realise that power supply accounts for 30% of the OPEX or is that AISC…hmmm, more reading required…lol.

It was explained that the FS AISC for the first 7 or 8 years is in the lowest quartile which suits my investment plan but the bigger pit, new electricity supply cost and the last 3 closing years of 170,000 ounce PA really puts a drag on the overall LOM AISC figure, not sure why they didn’t offer an investors 3 , 6 , 9 , 12 and 15 year progressive AISC presentation. Maybe the AISC figure has to legally offer full LOM figures, not sure about that.

The new guy Dave Anthony from Barrick was really pleased about the circuit setup saying there is a multi million dollar upside with the Flotation Circuit process saving heaps in construction costs for reduced concrete and steel costs and wear and tear on the rest of the reduced sized circuit. He had a cheeky accountanty sort of smile on his face telling about that. He tried to drop a joke in about this being the first presentation he has ever made. Canadians have a strange sense of humour he said.

On the CAPEX numbers Archie pointed out the proposed builder of the plant had done five similar African builds or setups dipping into the contingency budget only once when the owners of that one wanted changes mid build. $40 mil saving there hopefully.

I asked Archie two questions one privately before the meeting asking about my cross border security concerns which he was quick to answer that fortunately the locals are very supportive and friendly and that the USA has a permanent training contingent of troops patrolling the entire border of Ghana. That was my one major investment concern. I did not know that from my limited research.

And secondly from the floor after the presentations I asked him as a shareholder what his personal preference was for the future of the project development funding whether to issue more shares, JV, or sale and he initially pointed out that he and the rest of the board had “cut cheques” during the exploration phase so his interests are completely aligned with all the other shareholders but he diplomatically finished with the statement that he and the board would make the best decision to maximise shareholder interests.

When one of the analyst types asked a follow up question on that subject about access to the data room for potential investors Archie said that 4 African producers and 2 Aussie producers were perusing the data as we speak with another Aussie Producer asking for entry yesterday. He said after that the financiers were to get their look in but there would be a cut-off within a short period of time.

The primary official business of the meeting was concerned with the issue of options remuneration and it was interesting to see the difference in voting support for the different directors. Archie had the most support with only 20 mill no votes up to 80 mill no votes for the new guy Dave from Barrick and Canada. Maybe the no vote for Dave was because of the suspect Canadian sense of humour thing…lol.

I did feel a bit out of place attending in my work clothes amongst about 20 suits so I sat at the back with one other civilian looking investor who I chatted with. He has been a holder for 4 years and said he was looking at or hoping for a buyout at double the current share price where I am hoping, as a value investor that the COM Bank will stump up the 350 mill and we can maximise the value in about 5 years after the loan has been paid off. Everyone to their own I suppose.

I hope this long-winded report is not too out of line because I really enjoyed writing down my thoughts after attending my first shareholder AGM. Cherry broken…lol.

Good luck to all other holders, and 2ic, feel free to critique my effort, I respect your point of view and expertise.