Ann: Offer to Acquire Geko Tenements, page-11

I like the deal, another great acquisition by the directors. The reason the mining failed in the past was the ore had to be trucked to Coolgardie and by using toll treating they would have lost 30 - 40% of the value.

If it is 90koz, that gives us over $100M profit for the price of $11M, pretty handy. That’s assuming an AISC of $1300/oz which is probably conservative and a gold price of $2600/oz but that’s at $2650 at the moment. Just back of the envelope calcs.

If they keep buying 100koz every year, the share price will eventually take take of itself. Lady Ida will be next year’s pick up which will be huge.

2.5c is a bargain for this company long term, with the only risk being gold price and possible upside being Lady Ida, Timor-Leste and anything else they can buy.

I think it’s time they started purchasing capital to increase tonnage through the plant to get a step increase to 50koz/year instead of 30koz/year. With this 90koz, they’ve got about 7 years at 30koz I think, so 4 years at 50koz. 4 years is plenty of time to find more gold with Macphersons, Lady Ida and other ones around the place.

It’s time they start returning real value to the shareholders because we’re not getting any share price appreciation, so profits of $65M/annum instead of $40M gives everyone an extra 0.6c in dividends every year on top of what they’re currently getting. Yes you have to take away start up costs and slightly higher AISC, but I don’t think you’d find many shareholders that would say no to increasing throughput to 50koz/year.