Ann: MW2 and MW7 Continue to Expand on Latest Surface Samples, page-30

G'day TwinTurboCelica - it's a "no thanks" for me too - although it might go much higher, as the intersections to date have been breath-taking and I assume they aren't the end of it. HOWEVER, this is why I haven't bought into that stock. I'll admit I haven't looked at it closely but, because of your point - its location - I never would. No reflection on the discovery or the people in the company, or the bureaucrats in country.

1. Like you, IMO you can't ignore the possibility of significant sovereign risk at some stage My view is based affected by experiences elsewhere e.g. I lost well over $100k on one African 'investment' in a much better country than that (IMO), where I was invited in by a trusted Director of a company, who I still like, and whose honesty I still trust (but not his overall assessment competence - won't elaborate here). It wasn't the first time in a similar position - I dropped more in another offshore punt many years ago - but it won't happen again,

Ironically, what I've learned is that the more attractive a project looks in many offshore places (disregarding quality 1st world places like Canada), the more chance that it will be lost inappropriately and early shareholders burnt.

2. The drilling results that I saw looked amazing, astonishing, pick your superlative. But I don't know how extensive that particular feature may be or whether they might be more etc. Maybe there's heaps more, maybe not. Don't know because I didn't get past point 1.

(With KFM, we know there is great potential for other discoveries. I can imagine tremendous upside in KFM. You can't rule out ultimately a potentially much bigger MC than that company's ~$290M if they get a few don't-argue hits).

3. Discoveries in Australia, with its infrastructure, trained people, legislative framework etc. obviously have high inherent value, plus they have credibility with buyers etc.. I definitely take all that into account too.

4. All other factors being equal - and they're not to me at least - I'd rather invest in a high potential $29M MC play (in WA - in a tightly capitalised company like KFM) than in a ~$290M MC, just because of the leverage in the low MC stock. I don't have unlimited capital, so an investment in one stock has the opportunity cost of that capital not being invested elsewhere.

I know of good people invested in that other company and I hope they do well - but I'm much happier in KFM. Having made a considered decision that meets my own needs, I won't even have a twinge of regret if that other company gets its shareholders a better return ultimately.

I enjoy your KFM posts mate - thanks for sharing your insights. I'm just doing a detailed post on KFM, which I interrupted for this reply. Watch this space...