Just re-reading through the November Annual Report to...

Just re-reading through the November Annual Report to shareholders.

CTO would seem to have good and growing resource bases from which to build value. But I noted some worrying points in the report.

In noting their careful fiscal and mine development policy they note:

"...Citigold has never done a share consolidation
and therefore original and new shareholders
are all measuring against the same yardstick."

But then history supports the fact that they have what they call:

"..the company’s regular Share Purchase Plan, private and institutional placements and the conversion of notes."

Is this called dilution?

Even more concerning is the projected cost to link the Sunburst and Warrior reefs under the city at a possible $45 million cost, And only AFTER this is achieved can we MAYbe expect an end to dilution. note:


"..These initial scoping studies suggest some A$45 million will be required to get Sunburst to an initial production level of some 60,000 ounces per year. With the Warrior and Sunburst reefs in production at Charters Towers then, subject to gold price and operating cost projections, further growth of gold production on the goldfield may be able to be funded from internally generated cash flow."

I wonder how many more "regular share purchase plan" events will be needed to achieve these goals?

Any thoughts from others on this etc?

Cheers

cb25