another sbm, page-7

Hi Watso,

I'm going to stick my neck out and suggest this is not another SBM. We all knew RSG needed more money (SBM gave no indication on the other hand). Today's closing price is 74c and the bid ask is 71c / 88c. Buying volume outnumbers selling volume 5 to 1 at the close. Fortunately this behaviour is very different to what happened immediately following SBM's announcement.

Ask yourself what would have happened today if they attempted the raising at 95c per share? Shareholders like me wouldn't take up their entitlement and there would be no money to complete Syama commissioning. Having had a few hours to digest the news, 55c sounds about right given our horrendous market to entice loyal owners up to the plate one more time.

I admit $51m is more than I expected but it is to be used for other development work as well. I will be taking up my entitlement and remember a $1.10 raising, if memory serves correctly, they did several yrs ago far below market price which paid off well personally.

The positives as I see them: 1) no more hedging contracts entered into, it's an underwritten share placement; 2) the very high AUD gold price which I believe will hold up well (our central bank will continue their interest rate cuts further pressuring the AUD in months ahead); 3) provided RSG has done its homework correctly, Syama should solve all problems including the hedge book which is steadily diminishing quarterly anyway.

As we keep saying it all comes down to Syama and by February next yr, we'll know.

Rowingboat.