Ann: Operations Update, page-29

At the risk of poking my nose in where it's not wanted - actually it's not a risk, that is exactly what I am doing - I just cannot understand why folks are staying around here.

We all know intellectually at least that what we pay for something is irrelevant to its present value. In this case the company is beset by so many problems it is simply not credible to believe it is what most folks would be buying were they about to enter rather than already locked in. That being so continued investment is a triumph of optimism over rationality.

The word "scrambling" is absolutely the right one. That is what they are doing. Trying to convey an air of confidence and certainty while running in ever-diminishing circles to save the thing.

ALK's continued presence is not a source of comfort. They have little choice. If they exit they will collapse the company and probably the price at which their exit occurs. They are stuck with trying to support the scrambling in the hope something semi-viable emerges.

In my view folks trying to recoup their money would be much better placed looking for an explorer with good ground in the hope that a five to ten bagger could retrieve their investment rather than staying with the long slow grind that Calidus will be at best. And even if that best occurs the returns will be limited and the timeframe very long. Basic problem is simply not enough gold. And that of course is what distinguishes it from say Spartan. That was a dud too several times over, but the fantastic grade of a significant new find changed everything. Not so with scrambling to do lithium and develop little pepper-pots of high-grade scattered across the countryside.

There ARE good explorers out there that could be the antidote to a loss here. I know I am almost advocating gambling. But I do so because the sunk cost fallacy (i.e. its worth what I sunk or will be) is less crazy in this case than having a wee speculative flutter elsewhere with the same money. Or so it appears to me.

ATB and over and out. I'd love to be wrong.....