No need to hurry on this one lads/lasses. Only my observation, Never a recommendation. Two reasons in my opinion.
1. Plenty of time to get set at the next placement? Why? They cannot fund the existing development plans with current cash and mine cash flow. Only my view, often wrong. Or can they??? They always say after a new capital raising that they are debt and hedge free and fully funded.... is it true?
2. We need to see the Annual Report to shareholders to see what the average grade of the gold reserves is in the open pit and in the underground. They can drill all they like into zones that are deep to try and pump prime shareprice. That's long term upside that may or may not eventaute.
The new reserve grade will also have to consider what the mine operating costs are. If costs have risen 15%??? then all things being equal they need to mine 15% higher gold grades to keep the economics of the project constant, or they could try and high grade the mine (ie selectively mine higher grade parts of the orebody).
Oh also need to see what sort of salaries the execs are dragging out of company coffers....
The gold industry is really getting hit by cost escalation, and the fact that price of gold has not done as well as say nickel or copper, or coal. Small, poorly run companies just don't cut it in this environment for me.
Always seek independent advice, my comments are only observations, usually wrong, so don't rely on them. Do your own research.
TAM Price at posting:
0.0¢ Sentiment: Sell Disclosure: Not Held
