Ann: Quarterly Activities and Cashflow Report, page-107

I don't think you want to get carried away here.

They started the quarter with $8.5 million and ended with $5.5 million, so it's still a loss making enterprise, even with an Aussie gold price at $2,300.

They are ramping up though, so hopefully that will turn around and they can become profitable eventually.

The recent interest in gold will also help them somewhat, on the back of gold sentiment in the market.

The market cap is $100 million, which is probably close to about right, until they become profitable.

A share consolidation might also help.

In the last year they've had 3 capital raisings, of sorts.

It looks like they should be able to produce 20k to 25k oz per year for the next 4 years, so it's a small operation.

If they become profitable and make some money, they may then consider acquisitions.

Unfortunately, the recent drilling from Stockdale was not that great.

The next quarterly will be more interesting, to see how close they are coming to profitability.

Gw