I had some discussions with the chairman and there are no...

I had some discussions with the chairman and there are no immediate plans to do a capital raise. I told him it seems investors are very unsupportive of a capital raise. At the same time I am unhappy that there was no capital raise at a higher share price (let's say 15 cents), because I want to have no risk at all that the good exploration targets cannot be drill-tested if something happens to the current operations. Having financial flexibility is always a good thing. A CR is currently not needed and won't be done for a long time anyway (mind you there was not one for more than two years). Also John Jones still owns lots of shares and is in the same boat as we are. That is a very strong insurance against bad capital raises. What I want Troy to do is getting capital in a non-dilutive way. Growing the pie. I have no problem with a 15% + 10% capital raise to a strategic investor as that would have other advantages. For the time being Troy will get the next installment of cash for Casposo, then in late 2019 the cash injection from the Investec options. Strong cashflows (last quarter A$9.5m) as well. And on top of that maybe ultra-high-grade Ohio Creek ore directly at surface. So a capital raise if 25% of A$53m = A$13m makes no sense because it is dilutive and is not bringing in enough cash to make a difference (A$3.7m Investec options + A$2.1m Casposo + A$8m per quarter means Troy's cash position will improve by A$29.8m until mid to late 2019 before exploration and debt repayments). However, we could be at 50 cents per share next year and a capital raise would mean A$50m or more. That would make a difference and enable Troy to drill-test and fast-track ALL targets and pay for development costs (infill drilling, roads, mill design changes etc.)

I will never forget the 19.9% stake Franco-Nevada acquired in Normandy back in 2000. Was skeptical at first. Then the Anglogold bid came. Thanks to the Franco-Nevada stake we got much more for our Normandy shares and Normandy became the crown jewel of Newmont (take a look at how much of current reserves are on former Normandy properties). A strategic investor could do wonders for Troy.

I think investor have that irrational fear of a dilutive capital raise to pay for debt. Leftover from the past. They also seem to think Troy will be able to fully develop Karouni to its potential from internal cashflow. Not likely either. And larger investors may think no need to buy shares as we will get them cheaper in a cr. Not true either. There are no shares available in volume without getting the share price to a completely different level. So getting a huge stake commands a premium. And contrary to the past Troy can do a cr but does not have to. Big difference.